EMI Group, which Thursday pulled out of takeover talks with private equity firm Permira, is paying ¥21 billion ($179 million) to buy Toshiba’s 45% share in Toemi, their Japanese joint venture music company.
Deal, to be completed by the second quarter of 2007, will make EMI the sole owner.
Toemi’s roster includes some of Japan’s bestselling artists including Glay, Kyosuke Himuro, Tomoyasu Hotei, Yumi Matsutoya, Sheena Ringo, Utada Hikaru and Eikichi Yazawa.
Japan is the second-biggest music market in the world, after the U.S., and in the last fiscal year, Toemi reported pre-tax profits of $6.7 million, while its assets amounted to about $277 million.
Earlier, EMI Group said in a statement that it nixed Permira’s offer because it did not “fully reflect the prospects for, and value of, the company.”
In the biggest decline since Feb. 7, 2005, EMI shares fell 11% to £2.68 ($5.26) in London as investors cashed in on gains made over the past few weeks following speculation about a multi-billion-dollar bid for the world’s third-biggest music company.