Private equity group Terra Firma has succeeded in its bid to buy music
firm EMI – securing just more than the 90% of shareholder approval it
needed.
By the Wednesday deadline, 90.3% of EMI investors had agreed to the
£2.4bn takeover offer by the UK company, headed by buyout specialist Guy
Hands.
Above the 90% level, Terra Firma can forcibly buy the remaining EMI
shares.
EMI’s artists include Joss Stone, Lily Allen, Coldplay, Robbie Williams
and the Chemical Brothers.
The 265p-per-share offer for values EMI’s issued share capital at
£2.4bn, and the company’s value including debt at £3.2bn.
Rival bid
The bid had been repeatedly extended, but eventually shareholders were
given until 1300 BST on Wednesday to decide.
EMI had also attracted interest from Warner Music, which had a bid
rejected earlier this year.
The board of EMI first agreed to be bought by Terra Firma on 21 May.
One of the world’s big four record companies, EMI has seen sales decline
dramatically over the past year.
In May, it said that it had made a £260m loss in its latest financial
year.
Like all record companies, it has been hit by the trend for more digital
downloading of music, while a number of high-profile album releases have
badly disappointed.
EMI announced a radical restructuring plan earlier this year, resulting
in the loss of hundreds of jobs in both Europe and the US.
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Terra Firma wins in bid for EMI
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