HMV sells off stake in MAMA for a knockdown £7.3m

Click to follow
The Independent Online

HMV yesterday sold a major chunk of MAMA Group, the live-music business behind The Forum in Kentish Town, north London and a string of other venues and festivals including Lovebox and GlobalGathering, for just £7.3m.

LDC, the private-equity arm of Lloyds Banking Group, which is 41 per cent-owned by taxpayers, is the buyer. MAMA boss Dean James will stay with the group.

Debt-laden HMV will use the proceeds to pay off loans.

The sell-off follows HMV's disposal of Hammersmith Apollo, another key MAMA venue, for £32m.

This means that HMV has pocketed £39m from the sale of MAMA assets so far. HMV originally paid up to £64m for the business, but has not yet offloaded all of the live-music arm, as it is still looking to sell nightclubs G-A-Y and Heaven.

LDC director, Alistair Pendleton, said live music is "growing and increasingly important".

Shares in HMV fell 2 per cent to 2.5p, close to a record low, giving the former music giant a stock market value of less than £11m.