EMI Group Ltd, the holding company for EMU Music Group, announced today that its Board of Directors of its had "initiated a process to explore and evaluate potential strategic alternatives, including a possible sale, recapitalisation or initial public offering of the Company." Given that CitiGroup took control of EMI after a loan default earlier this year, the announcement appears to be the next formal step as the bank searches for the best way to offload the company.
A reacapitalization or IPO seem unlikely given EMI's recent past and the financial market's wary view of recorded music companies. A sale – as a whole company or in pieces – is more likely.
In making the announcement, EMI stated that there are "no assurance that this strategic review process will result in a transaction" and added that they do not intend to disclose developments "unless and until its Board of Directors has approved a specific transaction".
