CitiGroup Grabs EMI
Business As Usual For Everyone
February 1, 2011 at 10:01 AM (PT)
THE WALL STREET JOURNAL is reporting "CITIGROUP has seized control of EMI GROUP from GUY HANDS, acquiring 100% of the share capital on a restructuring that saw the company's debt load cut to £1.2 billion from £3.4 billion."
The move comes as no surprise to those following the rocky road that which began with HANDS' £4 billion buyout of EMI in 2007 through his private equity firm TERRA FIRMA, financed by CITIGROUP.
Just a few weeks ago (NET NEWS 1/10), rumors were swirling CITIGROUP could make this move by MARCH.
The recapitalization of EMI by CITI is an extremely positive step for the company.
In DECEMBER (NET NEWS 12/13/2010), HANDS warned investors that this day was coming.
THE JOURNAL adds, "CITIGROUP's acquisition of EMI comes just ahead of the company's next test of its performance against banking covenant targets that EMI wasn't expected to achieve."
"The recapitalization of EMI by CITI is an extremely positive step for the company," said EMI CEO ROGER FAXON. "It has given us one of the most robust balance sheets in the industry with a modest level of debt and substantial liquidity. With that solid footing, we are confident in our ability to drive our business forward."
CITIGROUP Vice Chairman STEPHEN VOLK has been appointed the new Chairman of MALTBY ACQUISITIONS, the holding company for EMI. VOLK stated, "Our objective is to have EMI perform its absolute best for our shareholders over time. EMI is an iconic business, and we are completely supportive of both its management and its strategy. It is business as usual for everyone at EMI."