New deal values retailer at $1.46BN.
Market-leading British music and DVD retailer HMV Group today (March 9) confirmed it was considering a revised takeover proposal from venture capital firm Permira Advisers Limited.
In a statement to the London Stock Exchange, the retail chain said it had received a revised conditional cash proposal for the group at 210p per ordinary share. That would value the firm at about £842 million ($1.46 billion)
Stock in HMV closed up 5.35% to 192p ($3.33) following the announcement.
"The board of HMV Group is currently considering the revised conditional proposal and a further announcement will be made in due course," the group said in its statement. "There can be no certainty that an offer will be made nor as to the terms on which any offer might be made. The announcement has not been made with the approval of Permira," it added.
London-based HMV Group earlier rejected a 190p ($3.29) per ordinary share takeover proposal from Permira. That offer, which valued the company at around £762 million ($1.323 billion), was rejected for undervaluing the group. High ranking executives at HMV told Billboard.biz that it was only a matter of time before Permira returned to the table with a raised offer.
HMV confirmed to the LSE on Jan. 30 that it had received its preliminary approach regarding a takeover. It did not reveal the identity of the buyer at that time.
Permira has offices in the United Kingdom, continental Europe, Japan and the United States.
In its half-year figures to Oct. 29, 2005 (published Jan. 12), HMV Group reported sales down 0.1% to £759.7 million ($1.34 billion), with operating profit down 85% to £2.8 million ($4.95 million).