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HMV shares soar as gigs deal given nod
Robert Lea15 Jan 2009
Shares in HMV leapt today as the retailer took the jump into live music and became the part-owner of the Hammersmith Apollo and some of London's favourite clubs.
HMV shares were 81/2p better at 136p after the firm got away a 1221/2p placing of stock with its major shareholders, equal to 5% of the enlarged equity.
That raised £25 million to help fund a new joint venture with the MAMA group as well as pay for 14 provincial stores it has bought from its bust rival Zavvi. HMV said it will take a 50% stake in a new venture in which MAMA will put 11 of its venues.
Those venues include the Forum in Kentish Town, the Jazz Cafe in Camden and the Heaven and G-A-Y clubs on the Embankment.
HMV said like-for-like music and video sales were up 3% over Christmas though the five weeks to 3 January saw a 2% decline at book-selling arm Waterstone's.
