Harbottle & Lewis advise MAMA Group Plc on Nettwerk Music Group acquisition

Harbottle & Lewis have advised MAMA Group Plc on their acquisition of a stake in the Nettwerk group of companies and partnerships from a group of entities owned or controlled by Ric Arboit, Dan Fraser, Mark Jowett and Terry McBride (the "Partners"). The Nettwerk companies and partnerships, which operate in the music management, publishing and record label businesses, are responsible for managing some of North America's biggest artists including The Stereophonics, Avril Lavigne and Barenaked Ladies and are based in Canada, the United States and the United Kingdom.

Under the terms of the multi-jurisdictional acquisition agreement, MAMA has acquired a 20 per cent. stake in the in each of the management and record label businesses together with a 20 per cent. stake of the Partners' interests in the publishing business. As a result of the acquisition, MAMA holds a share equal to that of the Partners in all of the Nettwerk companies and partnerships. The Partners will receive a mixture of cash, MAMA shares and MAMA share options as consideration for MAMA's stake and a proportion of this consideration is contingent on the financial performance of the Nettwerk companies and partnerships in the 2008 and 2009 financial years.

Tim Parker, Partner in the Corporate Group advised MAMA on the transaction and was assisted by Charles Lévêque, also in the Corporate Group. Glen Atchison, partner in the Tax Group provided advice relating to tax, assisted by David Scott, Paul Jones, partner in the Music Group advised in relation to music, assisted by Chloe Wright.

Adam Driscoll and Dean James, Co-Chief Executive Officers of MAMA said: "We are delighted that MAMA has been able to make this investment in the Nettwerk companies and partnerships and equally delighted that the investment has resulted in the Partners becoming shareholders in MAMA. We believe that this alliance creates one of the most exciting opportunities in the music industry – not by creating the biggest music business but by combining our skills to become the best".

For further information, please contact Tim Parker on 020 7667 5000.