Citigroup puts EMI for sale
21 Jun 2011
Troubled British music company EMI that was taken over by Citigroup in February 2011 from private equity firm Terra Firma, has been put up for sale by the New York-based bank.
EMI said in a release on Monday that "the board of directors of its holding company, EMI Group Global Ltd, has initiated a process to explore and evaluate potential strategic alternatives, including a possible sale, recapitalisation or initial public offering of the company."
It however added that, that "there can be no assurance that this strategic review process will result in a transaction".
The move by Citigroup was widely expected by analysts after it seized control of the 114-year-old music company from Terra Firma.
Terra Firma, led by financier Guy Hands had acquired EMI through a Citigroup run auction in 2007 for $6.5 billion in a highly leveraged buyout just before the onset of the global financial crisis with Citigroup loaning Terra Firma $5.4 billion for the acquisition.
But with the global economy in shatters and online piracy ravaging the music industry EMI was crushed under the weight of its debt. Guy Hands later took Citigroup to court accusing it of having duped it into buying EMI, and lost the case.
