Shares digital

Two acquisitions last week have boosted the number of venues owned by music and media group Mama (MAMA:AIM) to 20.

The company’s Barfly group of live music companies has extended its national venue portfolio by acquiring the lease of further premises in Birmingham. Known as The Sanctuary, the new venue is located above the current Barfly Birmingham premises and both will be fully refurbished in an effort to produce a world-class music venue for the West Midlands region.

In addition, Mama’s Mean Fiddler subsidiary has entered into a conditional agreement to acquire the freehold title to The Gig, a live music and entertainment venue in Edinburgh’s city centre. The group will be purchasing the venue from Luminar (LMR) for £3.6 million.

The Gig has been non-trading since January 2007 and there are no trading figures for the current financial year. However, based on an independent valuation, the venue has a vacant possession valuation (that is assuming no trade or licences) of at least £2.2 million.

The Gig will be refurbished through the deal and is expected to be earnings-enhancing as soon as it is reopened in the second half of 2008. The acquisition is conditional on the transfer of The Gig’s premises licence to Mean Fiddler. Mama’s shares were unchanged

at 5.25p.

Shares says: Rapidly expanding its portfolio which bodes well for the future.