Clear Channel, MCD closer to acquisition.
Mean Fiddler Music Group's takeover is edging closer to completion.
The firm's directors have agreed to the terms of a deal presented last month by Clear Channel Entertainment and Denis Desmond's Irish promoter MCD Productions. Through their Hamsard investment vehicle, CCE and MCD proposed to buy more than 21 million shares from MFMG chairman Vince Power at 60p each.
MFMG's board today (April 11) recommended to its shareholders that they accept the offer, which would value the company at £37.9 million ($71.1 million).
Under U.K. Takeovers and Mergers rules, Hamsard has until today -- 30 days from its initial proposal -- to make a formal offer. The bid is subject to clearance from the U.K.'s Office of Fair Trading. Stock in MFMG was up 2.75% to 58p in morning trading today.
"Mean Fiddler's world-class festivals and venues will add significantly to the assets we currently own in the U.K.," comments CCE chairman/CEO Brian Becker. "We believe that together we can take Mean Fiddler, the company that Vince Power has successfully grown out of one small venue, to even greater heights."
If completed, the deal would accord CCE a considerable influence in the British venues and touring market, where MFMG's interests range from the Glastonbury Festival -- in which it has a 39% interest -- to managing the Astoria and Forum venues in London.
MFMG says that following the planned acquisition, it will continue "to pursue a strategy of delivering world-class event promotion and event management both through its festivals and music venue businesses in the United Kingdom."
CCE owns, manages or consults on more than 25 European outdoor festivals, including the Isle of Wight in Britain, Werchter Festival in Belgium and the North Sea Jazz Festival in the Netherlands.