(Reuters) – Buy-out house Terra Firma is mulling the sale of a minority stake in its UK music business EMI to raise cash to pay back its debts, the Financial Times reported in its Friday edition.
Citing a person familiar with the group, the paper said the private equity firm was considering several approaches to buy a 49 percent stake in its music publishing division, which controls its back catalogue of songs.
Terra Firma could not immediately be reached for comment.
The paper was unclear about the identity of the potential bidders. An unnamed source told the FT one joint approach came from private equity group KKR and German music venture BMG.
However, a source familiar with the situation told Reuters that BMG/KKR was not in discussions over taking a minority stake in EMI.
BMG’s head Hartwig Masuch said earlier this month the group had no plans to make a bid for EMI.
Earlier this month, Terra Firma said it would inject some 105 million pounds into the music business to keep it within its covenants and prevent it from falling into the hands of its lender Citigroup (C.N) for another year. (Reporting by Caroline Copley; Additional reporting by Megan Davies in New York; Editing by Gary Hill)