LONDON (CelebrityAccess MediaWire) — Mathew Knowles has reclaimed control of MW Entertainment, Productions and Management, Inc. (MWE) from struggling independent music firm Sanctuary Group plc for a price of $5 million.
In a statement, Sanctuary explained that $3 million had already been paid, with the remaining $2 million to change hands by the end of 2007.
Knowles has also agreed to sell his 17,829 shares in Sanctuary within two weeks, and return the proceeds to the company, according to Billboard.biz.
As a result of the deal, Knowles now regains management control of “certain” urban artists contracted to MWE, including his daughter Beyonce and her band Destiny’s Child.
“This is another important step in reorganizing the group and putting it on a sustainable footing with proper standards of corporate governance and financial transparency,” Sanctuary CEO Frank Presland said in the statement.
“This is a business that can prosper if it faces up to the new realities and management remains committed to focusing on driving the business forward to deliver appropriate levels of performance.”
Sanctuary originally acquired MWE from Knowles in 2003, paying $10 million and making Knowles president of the group’s new urban division.
Knowles officially exited Sanctuary in March of this year, and has been working on a deal to fully reclaim MWE since. –by CelebrityAccess Staff Writers