Citigroup has taken over record company EMI under a debt restructuring plan after owner Guy Hands lost a court battle last year.
EMI, a more than 110-year-old record company, said in an e- mailed statement today that Citigroup has acquired 100 per cent of its share capital. As part of the deal, Citigroup recapitalized the company, cutting its debt by 65 per cent to £1.2 billion.
"The new capital structure provides EMI with the financial strength and flexibility to continue delivering on its strategy," EMI said in the statement.
The takeover by Citigroup may pave the way for the record label's sale.
Warner Music Group and BMG Rights are among companies that have expressed an interest in buying EMI's publishing and recorded assets. Warner, which abandoned a takeover for EMI in 2007, held talks in 2009 to make a joint offer with KKR and Co.
For Mr Hands, EMI was the most high-profile deal of his career. He bet almost a third of his €5.4 billion fund on the money-losing company. Terra Firma bought EMI for £4 billion at the height of the buyout boom in 2007.
Bloomberg