Universal Music Agrees To Buy Sanctuary Group
June 15, 2007 at 5:45 AM (PT)
VIVENDI SA's UNIVERSAL MUSIC GROUP has agreed to buy SANCTUARY GROUP for 44.5 million pounds ($88 million), reports BLOOMBERG. UNIVERSAL MUSIC's CENTENARY MUSIC HOLDINGS LTD. will pay 20 pence a share in cash for SANCTUARY, the VIVENDI unit said in a Regulatory News Service statement today. That's 13% more than yesterday's closing price for LONDON-based SANCTUARY.
VIVENDI received EUROPEAN UNION antitrust approval in MAY to buy BERTELSMANN AG's BMG music-publishing division for 1.63 billion euros ($2.2 billion) after agreeing to sell some collections of songs, including rights to songs by BRITNEY SPEARS and the BACKSTREET BOYS.
"The SANCTUARY business will be a good strategic fit for us," UNIVERSAL MUSIC CEO DOUG MORRIS said in the statement. SANCTUARY manages artists including ELTON JOHN and ROBERT PLANT.
"The past few years have proved to be a very difficult time for SANCTUARY and a very disappointing one for its shareholders," Chairman ROBERT AYLING said in the statement. "Growth and profitability will continue to be hampered by the SANCTUARY GROUP's present capital structure and by industry factors. Therefore, we intend to recommend this offer."