LONDON (VIP NEWS) — UK entertainment retailer HMV Group said it has secured acceptances of 56.4% of the shares in live venue joint venture partner Mama Group.
HMV had the backing of the share-holding Mama company directors for its Dec. 23 offer of 5.4 pence per share, which values the company at £46 million.
HMV already ownws 9.9% of Mama and the directors' equity holdings totaled 8.9%.
By 1pm GMT on Jan. 29, it had received valid acceptances in respect of 455,812,753 Mama Group shares – 56.4% of the issued share capital.
Combined with its own Mama shares, HMV owned or had received valid acceptances in respect of a total of 535,562,753 Mama shares – 66.3% of the issued share capital – and so all conditions of the offer were satisfied and it was declared unconditional.
"I am delighted that our offer for Mama Group has been successful, and to welcome our new colleagues from Mama to HMV," said Simon Fox, HMV Group chief executive, in a statement.
"The acquisition represents a further significant step for HMV as we continue the transformation of our business begun in 2007. Building on the successful platform created by the formation of our joint venture with Mama just over a year ago, we will be embarking on exciting new growth plans for the Group in live music and ticketing."
The share offer remains open until further notice. HMV said it might de-list Mama from the AIM market on the London Stock Exchange, if it receives acceptances for its offer which would result in the retailer holding an aggregate of at least 75% of the total voting rights at general meetings.
In January 2009, HMV and Mama Group partnered on a joint venture, named the Mean Fiddler Group, covering 11 U.K. venues including the renamed HMV Apollo and HMV Forum venues in London. HMV invested £18.25 million in the JV.
Mama also has an artist services arm, which manages acts including Kaiser Chiefs and Franz Ferdinand. –according to Billboard
