The Universal Music Group has extended its cash offer to buy the eternally financially troubled UK independent, the Sanctuary Group. As previously reported, the major, which hopes to acquire the cross-sector music firm via its UK subsidiary Centenary Music, won the approval of the Sanctuary board for its takeover offer of 20 pence per share last month.
The original deadline for Sanctuary shareholders to take up the offer was last Thursday, but the major announced that, with just 30.88% of Sanctuary shares now formally offered to them, they are now extending the deadline to 26 Jul.
The statement confirming the extension also announced the takeover proposals had won regulator approval in the US, Germany and Australia. The bid will also require approval from the European Commission, who are probably the competition authority most likely to express concern about the largest major record company in the world acquiring one of the largest independents. However Universal remain confident that because Sanctuary's real strengths lie in management and merchandising, sectors in which Universal does not currently operate, the EC should OK the deal without any problems.