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AID Partners to sell stake in HMV’s Asia operations to Japan’s World Innovation Lab

Friday, March 04, 2016

(DealStreetAsia by Ishita Russell) - Hong Kong-based private-equity firm AID Partners is ready to partially exit HMV‘s Hong Kong and Singapore businesses, which it had acquired in 2013. It has agreed to sell 18.37 per cent stake in the business to Japan-based World Innovation Lab for $9 million.

As per the agreement, the Japanese investment firm will acquire 2,250 new ordinary shares in the capital of the HMV Group’s Asian operations.

According to a stock exchange filing, the proceeds from the stake sale would be used for the general working capital of the HMV Group.  It also said World Innovation Lab specialised in investment in, among others, technology and media sectors, and its introduction as a partner would help in the strategic development and promotion of the businesses of the movie and music retailer by bringing in international network and business experience.

Under the agreement, AID Partners will sell shares in HMV’s Asia portfolio – which is operated under an entity of HMV Marketing – to WiL Fund I, an investment fund managed by World Innovation Lab. Upon completion of the deal, AID Partners will still own 81.63 per cent of the business.

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