Chrysalis founder nets £30m from sale to BMG
Saturday 27 November 2010
Chrysalis is to be taken over by a German media group and a US private equity giant in a cash deal worth nearly £110m, which will net its co-founder Chris Wright a cool £30.1m.
BMG, a joint venture between Germany's Bertelsmann and Kohlberg Kravis Roberts, will pay 160p a share for Chrysalis, a 45.5 per cent premium to the closing price of 110p on 29 October, the day before the London-based company revealed it was in takeover talks. Shareholders owning 73.4 per cent of Chrysalis – whose back catalogue includes tracks by pop legends Michael Jackson and David Bowie – have backed the £107m bid, which is expected to complete in early February 2011. After four decades of independence, Chris Wright, the chairman of Chrysalis, said: "The deal marks the end of one era and the start of another for Chrysalis."
Mr Wright, who has a 28 per cent stake in Chrysalis, will become the non-executive UK chairman of BMG and join its supervisory board. Back in 1967, Mr Wright formed the Ellis Wright Agency with Terry Ellis, to make a living from managing and booking bands. The company was renamed Chrysalis in 1969 and Mr Ellis sold his shares to Mr Wright in 1985.
Chrysalis grew rapidly in the 1980s and its back catalogue also boasts artists such as Blondie and Billy Idol.
Mr Wright sold the original record label to Thorn EMI in 1991 and offloaded Chrysalis's radio division to Global Radio for £170m in 2007, but crucially he kept its music publishing interests. BMG will use the Chrysalis name for at least the next three years. Hartwig Masuch, the chief executive of BMG, said: "The acquisition of Chrysalis represents an important step forward in our strategy as we build a major global music rights business."
Jeremy Lascelles, the chief executive of Chrysalis, will remain in his role until the deal completes, but sources said it was too early to comment on a future position for him.
- 1 Gun instructor accidentally shot dead by nine-year-old girl with Uzi gun
- 2 Miley Cyrus' homeless MTV VMAs date, Jesse Helt, is wanted by the police
- 3 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 4 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 5 Homer Simpson has taken the ALS ice bucket challenge because of course he has
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Jeremy Clarkson is a cultural tumour and needs to be removed, says comedian Frankie Boyle
- < Previous
- Next >
iJobs Money & Business
£40000 - £48000 per annum + benefits+bonus+package: Harrington Starr: C# Devel...
£45000 - £60000 per annum + benefits+bonus+package: Harrington Starr: C# Swift...
Negotiable: Harrington Starr: A fast growing Financial Services organisation b...
£50000 - £60000 per annum + excellent benefits: Harrington Starr: An award-win...