UK-based music, video and electronic games retailer HMV Group Plc (LON:HMV) has sold its live venue and artist management unit MAMA Group Limited and its 50% stake in venue operator Mean Fiddler Group Limited in a deal worth GBP7.3m (USD11.7m/EUR9m), the vendor said today.
The assets were bought by Juno Newco Limited, a unit of UK’s private equity firm Lloyds Development Capital Limited. The transaction involves the sale of all of MAMA Group’s subsidiaries excluding G-A-Y Group Limited and Heaven (London) Limited. HMV plans to offload these units in a separate deal and has already launched talks on their sale, it added.
As much as GBP3.5m of the price consideration will deferred for 12 months, the vendor noted, adding it would use the proceeds from the disposal to trim its indebtedness.
The transaction is part of HMV’s plan to shed its live business assets. Earlier in 2012, the company sold Hammersmith Apollo Limited, the owner and operator of London live entertainment venue Hammersmith Apollo.