[JPL] EMI shareholders approve sale

[Jazz Promo Services]

http://www.variety.com/article/VR1117969544.html


Posted: Wed., Aug. 1, 2007, 8:31am PT
EMI shareholders approve sale
Terra Firma purchase now assured
By GORDON MASSON
LONDON ‹ Private equity group Terra Firma's £3.2 billion ($6.4 billion)
takeover of EMI Group was finally ratified Wednesday when the required 90%
of EMI shareholders voted in favor of the deal.
Terra Firma's 265 pence per share bid valued EMI at £2.4 billion ($4.8
billion), but the assumption of the company's debt pushed the figure up to
$6.4 billion.

The shareholder approval for the transaction effectively ends years of
speculation about EMI's future, during which time it had much publicized
attempts to merge with BMG and multiple failed attempts to wed Warner Music.

In July, Warner paved the way for Terra Firma's takeover when it said it did
not intend to bid for EMI. Until that point, shares were trading at above
the 265 pence level as the stock market speculated that an improved offer
was being prepared. Shareholders were originally slow to take up the offer,
prompting Terra Firma to extend its offer deadline no less than five times
before securing 90.27% of positive votes Wednesday.

Terra Firma's acquisition will see EMI removed from trading on the stock
exchange. Industry observers predict the new owners will attempt to
streamline operations to cut costs and may even decide to divest some of the
company's assets, which primarily consist of a number of record labels, as
well as EMI Music Publishing.

In a statement, Terra Firma said: "The offer is now unconditional as to
acceptances," meaning that the remaining 10% or so of shareholders that have
not accepted the takeover terms could now be forced to sell their shares to
the private equity house.

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