London based MAMA Group yesterday announced it was formally ending its bid to acquire larger rival Sanctuary Music Group.
As previously reported, MAMA, whose assets include cross-sector music company Channelfly, announced it had made a share-only takeover offer for the struggling Sanctuary Music Group back in July. Sanctuary's board quickly knocked that offer back, but MAMA have since been investigating other ways that a takeover might work. But yesterday, in a statement to the city, MAMA said it would be bringing those efforts to an end without making another offer.
They said: "Following a meeting with the Sanctuary board on 27 Jul, and their subsequent rejection after a cursory examination of MAMA Group's proposals on 28 Jul, MAMA Group has been seeking to formulate a proposal which would be in the best interests of both MAMA Group's and Sanctuary's shareholders".
"However," they continued, "Sanctuary has made it clear, through their advisers, that they are not prepared to engage in any meaningful dialogue with regard to MAMA Group's proposals. We now believe there is little merit in attempting to continue to seek an acquisition of Sanctuary".