EMI’s Board Accepts Terra Firma’s Buyout Bid
EMI’s Board of Directors has recommended that shareholders accept a $4.7 billion / Â£2.4 billion cash bid by private equity company Terra Firma Capital Partners. In a joint statement, the companies revealed that the EMI board intends to recommend unanimously that its shareholders accept the offer, noting that the directors have already undertaken to sell their own holdings to Maltby, a concern that Terra Firma set up for the purpose of making the 265 pence ($5.22) per share offer for EMI.
Terra Firma’s CEO Guy Hands has been quoted as saying, “Terra Firma’s objective is to build on EMI’s current position as one of the world’s leading music companies and accelerate the development of its digital and online strategy to fully exploit this long-term growth opportunity.”
EMI also announced its results for the year ended March 31, which saw revenues fall 15.8% to $3.46 billion, while pre-tax profits slumped to $520.7 million.