www.pacific-capital.lu/#/about-press-releases/
During 2008 PACIFIC CAPITAL have been buying up 13% Of MAMA group.
At the end of JULY PACIFIC CAPITAL have loaned again £10 million to MAMA ( which means their stake is going up all the time - possibly getting near to 40% now )
www.reuters.com/finance/stocks/keyDevelopments?symbol=MAMG.L
GOLDMAN SACHS have reduced their holding from double digits to around 7% of MAMA in the same period.
MAMA additionally have given 50% of their venues to HMV in a £18 million deal early in 2009.
Now all of this capital is being used to expand the company - growth being the operative word. But MAMA shares are still under 5p each showing no growth in 2009.
The £10 million was to cover for debt. Which means that the MAMA venues and management etc must still be losing significant amounts of money.
The NEXT LOAN to keep MAMA afloat would see them having to give up more than 50% of the current holding - thus the company falling into the hands of Pacific if they choose to buy out.
Up until now the Company has been run by the people who set it up - successfully. However, in the "rush to growth" in a recession they need to be sure of their strategy because if the economy dips again this autumn ( as is being predicted ) then they could find that in January they are high and dry.
Pacific seems to be like a PIRANA FISH encircling businesses with debt problems who hold emiment positions within their area. They know that they can keep loaning the money with a smile on their face ( They have a billion in assets ) and the more the loan the more they smile - until they become the biggest shareholder and have the company in their grasp for less than half the real the value of the company.
This happens all the time in publicly quoted companies and is why Vince Power hated being publicly quoted because investment sharks encircle at the slightest sniff of blood ( Debt )
A new owner would close down all the areas that do not make a profit immediately within MAMA. This means that the portfolio could look alot different in 12 months time.
It would be another major blow to live music in the UK because once again the corporate interests would get their hands on yet another music company so I hope it does not happen. But if the economy goes down again then it seems as if MAMA will have a fight on their hands to stay out of the clutches of these people.
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