Maxwell stake in Nimbus is sold
The buyer of MCC's 75.1 per cent holding is DLJ Merchant Banking, a subsidiary of Donaldson, Lufkin & Jenrette, the New York investment bank.
Price Waterhouse, the joint administrator of MCC, will receive cash. It said yesterday that the deal would be completed by the end of this month.
The deal is to be funded by substantial equity from DLJ with Morgan Grenfell, the merchant bank, providing the senior debt.
The administrators said DLJ was one of about 100 suitors to emerge since problems arose with MCC following Maxwell's death. The original line-up included several media groups.
Nimbus is one of Britain's best- known independent music companies. In 1984 it becaame the first company in the UK to manufacture compact discs. Two years later it became part of the former Maxwell empire. But the company continued to operate independently, making the decision to enter the US market in 1987.
The company specialises in classical CDs and in transferring old 78s on to compact disc.
Nimbus employs 700 people and has manufacturing plants at Cwmbran, Gwent, and Charlottesville, Virginia.
A spokesman for the company said the deal would allow it to expand research and development activities and to retain its autonomy.
Count Labinsky, the founder- president of Nimbus, welcomed the agreement. He and his co- founders, Gerald Reynolds and Michael Reynolds, hold the balance of Nimbus shares. Peter Laister will continue as chairman.
Jonathan Phillips, a partner with Price Waterhouse, said the deal represented the best return to MCC creditors and was good for the record firm and its employees.
- 2 Italian police 'reveal' what Jesus looked like as a young boy
- 3 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
Italian police 'reveal' what Jesus looked like as a young boy
Who should I vote for? The Independent quiz matches best political party for undecided voters ahead of the general election
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
Syria's 'circle of hell': Aleppo residents describe children without heads, streets filled with blood and injuries never before witnessed by surgeons
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...