Beyonce management firm considers cash call
Shareholders in music management firm Sanctuary faced seeing their stakes in the beleaguered firm virtually wiped out today.
The fresh blow comes after the company behind artists such as Beyonce and Elton John revealed it was considering a move to tap potential investors for new funds, as it looks to reduce its high level of debt.
Shareholders have already seen the value of the company slump to around £12m (€17.7m), from a peak of £240m (€355m), after a series of profits warnings and accounting problems.
Sanctuary said it still had the support of its banks but that it was considering a “significant” equity fundraising. It is expected to be structured as a rights issue and raise around £100m (€148m) from investors, virtually wiping out the equity of existing shareholders, reports indicated today.
