Terra Firma chief executive Guy Hands said Friday the private equity venture had no plans to sell its ailing recorded music division, despite how badly the company had been run.
EMI, which parted company with former CEO Eric Nicoli and finance director Martin Stewart last month, was acquired by the private equity venture for £2.4 billion ($4.7 billion) in May.
“We are determined to keep that part of the business and we are determined to make it viable,” he told reporters at the Royal Television Society.
Analysts had speculated that the recorded music division would be hived off and merged with another trade player, while Hands retained the music publishing division.
In an address to broadcasting execs here, Hands outlined Terra Firma’s investment strategy. “We look for the worst business we can find in the most challenged sector and we get really happy if it’s really, really bad,” he told the convention. “EMI, our most recent investment, is a classic example. We’re just hoping EMI is as bad as we think it is.”
EMI, the world’s third-largest music company that is home to artists such as Lily Allen and Norah Jones, had seen its shareholder value decimated over the past 24 months as it became a victim of internet piracy and the growth of digital music. Shares are expected to be delisted later this month.