The international music giant, HMV Group is all set to take over its joint venture partner in live music, the Mama Group, after giving the green signal to a cash offer of 46 Million Pounds, and thereby outracing a previous offer put forward by Mama's current biggest shareholder, SMS Finance.

Under the deal, which has pegged Mama's per share price at 5.4 pence, HMV would be able expand its role in the rapidly growing live music market, and branch out of its dominant domain of retail offering in music, books and movies.

"I am delighted that we have agreed terms for a recommended offer. Our joint venture has worked well since its formation and the full combination of HMV and Mama will enable us to accelerate our growth into live music", said Simon Fox, HMV Chief Executive.

In January this year, in association with Mama, HMV had established the Mean Fiddler Group, which made the company a part owner in 11 major music ventures, including the Jazz Cafe.

Yesterday, the directors of Mama had unanimously recommended that the company accept the offer put forward by HMV, and it will be funded through the firm's existing bank facilities.