Terra Firma bags EMI
Majority shareholders boogie on down
Private equity group Terra Firma has succeeded in its bid to buy music giant EMI after 90.3 per cent of shareholders backed its £2.4bn offer.
Terra Firma was granted a series of deadlines, the fifth of which expired today at 1pm (GMT), to achieve the 90 per cent shareholder threshold required to secure the deal.
Shareholders accepted an offer of 265 pence a share to allow Terra Firma to bag the music firm, which has the likes of Coldplay, Joss Stone, and Lilly Allen on its books.
EMI first agreed an offer from Guy Hands, who heads up the British private equity firm, on 21 May when rival Warner Music Group (WMG) was still in the picture as a likely bidder for the firm.
However, following its long-term desire to swallow up EMI, WMG finally backed out last month declaring that it could not justify a hefty counter bid against Terra Firma to stay in the race.
EMI was said to have always preferred being bought out by a private equity company rather than by one of the other so-called Big Four music firms.
Terra Firma will undoubtedly be keen to turn the prospects of the troubled music giant around. EMI has been in financial free fall reporting a £265m loss in May this year, citing disappointing album sales. ®