Simon Fox, chief executive of HMV Group, comments: ‘The Board has fully explored the options available to it for HMV Canada, and believes that a sale to Hilco is the correct decision for the business at this time, whilst reducing the operating leverage in the continuing Group.’
Although the disposal is relatively small in comparative monetary terms, it follows HMV’s recent trend of financial and corporate restructuring. Earlier this month HMV secured a £220 million refinancing deal that will involve the British taxpayer taking a stake in the group.
The deal to sell the Canadian business comes soon after the completion of HMV’s shareholder backed disposal of its Waterstone’s book chain to Russian billionaire Alexander Mamut for a consideration of £53 million.
According to a statement the business is planning to move away from its traditional role as a high street music, film and video games retailer and move into the rapidly expanding e-readers and tablets market.
Round-up of today’s M&A deals
- NewRiver group has entered into acquisition agreements to acquire a portfolio of four freehold shopping centre assets from Zurich Assurance Limited
Value: £68 million
Advisers: Cenkos Securities, Kinmont Limited
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- HICL Infrastructure Compan has acquired a new interest in the the Pontefract and Pinderfield Hospitals PFI Project and three incremental interests in existing investments.
Value: £32.8 million Advisers: InfraRed Capital Partners
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- Etalon Group has acquired a 2.1 hectare land plot in the Moskovsky district of St Petersburg on which it plans to develop a new 50,000 sqm net sellable area mass market residential neighborhood project.
Value: undisclosed
Advisers: Financial Dynamics
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- Solihull energy software specialist Contigo is expanding into mainland Europe after agreeing a three-year partnership deal with Spanish technology firm Indra
Value: £1 million
Advisers: undisclosed
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