Chrysalis Group in takeover approach

Chrysalis Group, the music publisher whose artists include David Bowie and Blondie, has received a takeover approach. Britain’s largest remaining independent record company is believed to have been approached by global giants Sony Universal and Warner Music.

Chairman, Chris Wright, co-founded Chrysalis with Terry Ellis in 1969, and hinted he was ready to sell last month. The takeover news sent shares up 6p to 112.5 and comes 6 months after Chrysalis sold its radio arm, including Heart FM, for £170 million to Global Radio, headed by ex-ITV chief executive, Charles Allen. The £170 million is due to be paid out shortly by way of a scheme of arrangement involving setting up a new company.

Analysts believe the remaining music business could be worth between £180 million and £240 million. Likely suitors would be private equity firms such as Terra Firma, which purchased EMI for £2.3 billion in May. However, analysts said it was not a good time to sell the business, with EMI’s well-publicised difficulties and the overall downturn in the world music market.

Chrysalis is also considering options to remain independent and even making acquisitions itself with a number of potential targets on the books.

Chris Wright said we have built our music publishing business into one of the largest independent music publishers in the world with good potential for market out-performance.

Story link: Chrysalis Group in takeover approach