Independent music firm Chrysalis yesterday made public its intention to find a buyer, pushing its shares up by more than 20 per cent.
The company, which owns tracks by artists including Michael Jackson and David Bowie, is also considering merging its operations with a another firm.
A company spokesman admitted the firm is “in early stage discussions with a number of parties regarding merger opportunities”.
He said the talks are at a “very preliminary stage” and added “there can be no certainty that an offer will be made or the terms on which any offer would be made.”
The firm has hired Jefferies to advise it the sale deal. The music ownership firm, which has a market cap of £74m, declined to name who it has been in talks with.
Earlier this year Chrysalis said it expects to grow its royalties in 2011 as it continues to build on a robust year so far.
With a promising autumn/winter release schedule, it says it is set to benefit from albums by Rumer, Fleet Foxes and White Lies and gain from contributions by its writers to albums by Kylie Minogue, Tom Jones and Robbie Williams.
JULIAN CULHANE JEFFERIES
ADVISING on the deal is investment bank Jefferies. Heading up the team is Julian Culhane, Managing Director in M&A Investment Banking. He has held the position since 2007. He joined from LongAcre Partners, where he was one of three founding partners who grew the firm into a leading media corporate finance advisory firm before its acquisition by Jefferies. Prior to this he was chief financial officer at lastminute.com.