The move will allow Vince Power, the rock promoter, to bring his entertainment empire to the stock market after 18 years of private ownership.
Under the new deal, meanfiddler.com will acquire its parent company, Mean Fiddler Holdings, in a cash-and-share deal that will value the combined group at about £48m.
In addition, it is expected that meanfiddler.com will raise at least £10m through an institutional placing which will provide the cash element of the deal and working capital for the group?s expansion plans.
The Mean Fiddler empire was established in 1982 and is now one of the leading music festival and venue promoters owning such sites as the Jazz Caf‚ and the Forum in Kentish Town, London, as well as promoting the Reading and Fleadh festivals.
The deal will be classed as a related party transaction as Vince Power, Maurice Power and Melvin Benn, directors of the holding company, hold 46.3% of meanfiddler.com shares.
Following consultations with Grant Thornton, the other directors of meanfiddler.com accepted the terms of the acquisition. Future plans for meanfiddler.com include a music channel on digital television, exploiting the Mean Fiddler brand and continuing to grow the sales of tickets online.
Separately, Worldpop, the media company founded by former Radio One DJ Peter Powell has announced it has secured £5m second round funding, despite hostile market conditions for such financing.
The company, set up in 1999, provides pop music-related news and information to its predominantly teenage audience through the internet and text messaging.It has also backed tours by Mel C of the Spice Girls and Steps. The funding includes the first time investment of £3m by the private equity arm of investment bank Dresdner Kleinwort Benson.
Other existing investors include 3i Group, Chase Capital Partners, ETF Amadeus Capital Partners and Accelerator Group.
A flotation of Worldpop has been ruled out for the foreseeable future, but analysts believe the company could be a potential takeover target for a media company, internet portal or mobile phone operator.
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