HMV Group Plc, the market-leading British music retailer, has launched a cash takeover bid for Ottakar's Plc in a deal valuing the U.K. bookseller at about £96.4 million ($177.26 million).

HMV Group Plc, the market-leading British music retailer, has launched a cash takeover bid for Ottakar's Plc in a deal valuing the U.K. bookseller at about £96.4 million ($177.26 million).

HMV said on Thursday (Sept. 8) that it tabled a 440p-a-share offer. The bid was made by UBS Investment Bank on behalf of HMV Group. On Tuesday, Ottakar's directors had backed a 400p-a-share offer, or £91 million ($167 million), from the chain's founders.

HMV also said Thursday that it had received undertakings to accept the offer in respect of around 30% of Ottakar's share capital.

HMV, which already owns the Waterstone's bookseller chain, announced on Aug. 25 that it was in discussions on a possible buyout of Ottakar's.

"The acquisition of Ottakar's is an exciting step forward for our Waterstone's business," comments HMV CEO Alan Giles in a statement. Giles noted that the book chains represent a "highly complementary" business proposition and the combined group would be "better positioned to provide customers with a wider and more relevant choice" of product.

Giles said the acquisition was expected to be earnings enhancing, before exceptionals, from the first full year.