EMI back on the market as Citigroup seeks exit strategy
Tuesday 21 June 2011
EMI, the record label whose artists include Tinie Tempah and Gorillaz, has been officially put up for sale by its investment banking owner, Citigroup, which seized control of the group earlier this year.
EMI Group Global, which has been controlled by Citi since February, said it had "initiated a process to explore and evaluate potential strategic alternatives, including a possible sale, recapitalisation or initial public offering for the company". A sale is believed to be the preferred outcome.
A source close to the situation said Citi had waited several months to start the formal process of divesting EMI, because it wanted to wait until the business had stabilised. The group has also been pulling together "certain amounts of information" in preparation for forthcoming negotiations.
It is believed that some groups, including Warner Music Group, have expressed their interest in a potential deal to buy EMI, but there has not been a formal approach as yet.
Citi seized EMI off Terra Firma after the private-equity group defaulted on its loan repayments. The initial buyout was spearheaded by Terra Firma's chief executive, Guy Hands, in 2007, shortly before the collapse of the leverage bubble. This, and the structural shift in the music industry to digital, left Terra Firma struggling with £3.2bn of debt, mainly provided by Citi.
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 2 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 5 Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...