More fun over at the Sanctuary Music Group yesterday after the frequently trouble music firm confirmed that it had received an unsolicited share-only (ie no cash) takeover approach from MAMA, the group who own Sanctuary's smaller rival, cross-sector music company Channelfly.
MAMA made the all-share takeover offer on 14 Jul, but said yesterday that they were yet to receive a "meaningful response". They also indicated that if the Sanctuary board declined their offer, that they may attempt a hostile takeover anyway, believing that their proposed merger is in the best interests of shareholders of both companies.
In a statement to the city, they said: "The board of MAMA Group believes that the Possible Offer is in the best interests of the Sanctuary shareholders and the MAMA Group shareholders and, whilst the Board of MAMA Group would prefer to work with the Board of Sanctuary, the Board of MAMA Group is considering proceeding with the Possible Offer whether or not the Possible Offer is or will be recommended for acceptance by the Board of Sanctuary".
In response, the board of Sanctuary said yesterday: "The Board is continuing to evaluate the proposal and whilst this evaluation remains at a very preliminary stage the Board has already indicated a willingness, in principle, to meet with MAMA Group plc following the publication [later this week] of Sanctuary's interim results for the six months ended 31 March 2006".
As previously reported at length, the Sanctuary Music Group continues to try and overcome recent financial hardships, with recently appointed Frank Presland overseeing the latest restructure.