HMV's MAMA takeover path clear

Jan 4 2010 By nebusiness

The path for retailer HMV’s £46m takeover of MAMA Group was cleared today after a rival offer for the music venues and festivals firm lapsed without support.

MAMA’s largest shareholder, Luxembourg-based investment firm SMS Finance, made a £38.3m unsolicited approach for the business in December.

SMS - the investment vehicle of Italian telecoms billionaire Silvio Scaglia - owns 29.8% of the business but failed to up its offer after HMV agreed a higher price with MAMA two weeks ago and the bid was snubbed.

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

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.