HMV agrees takeover deal

Dec 23 2009 By Andrew Mernin

MUSIC and games firm HMV today shored up its position in the growing live music market after agreeing a £46m takeover of MAMA Group.

The move comes less than a year after HMV and MAMA formed a joint venture which owns 11 music venues and an interest in events such as London’s Lovebox festival.

HMV, which already owns 9.9% of MAMA, said it had support from investors representing almost 34% of MAMA’s shares.

The deal trumps a previous £38m unsolicited approach from MAMA’s largest shareholder, Luxembourg-based investment firm SMS Finance, two weeks ago.

The 11 venues owned by the Mean Fiddler joint venture are the Hammersmith Apollo, the Forum, the Garage, Jazz Cafe, Heaven, G-A-Y Bar, G-A-Y Late, and the Borderline in London, as well as the Edinburgh Picture House, The Birmingham Institute, and Aberdeen’s The Warehouse.