Entertainment group HMV is to buy its joint venture partner Mama in a deal valuing the business at £46m.
The acquisition follows the formation of a partnership with Mama in January 2009 to create 50:50 joint venture Mean Fiddler Group, broadening HMVs interests with a move into music and entertainment venues.
Earlier this month Mama rejected a bid from shareholder SMS Finance and speculation followed that HMV would make an offer. Mama’s directors intend to unanimously recommend shareholders accept HMV’s offer and the retailer already owns or has irrevocable undertakings over 33.8% of Mama’s shares.
HMV Chief executive Simon Fox said: “Our joint venture has worked well since its formation and the full combination of HMV and Mama will enable us to accelerate our growth into live music.”
Mean Fiddler venues include the Jazz Café, HMV Hammersmith Apollo and nightclubs Heaven and G-A-Y.