A cast of property magnates, stage impresarios and media executives are putting their hands in their pockets to fund the creation of Britain’s largest theatre operator.

Ambassador Theatre Group (ATG) is this weekend finalising the acquisition of most of the 17-strong theatre estate owned by the concert organiser Live Nation.

The deal, which is valued at just under £100m, brings together ATG’s historic London theatres — including the Duke of York’s and the Piccadilly — with Live Nation’s Lyceum and Apollo Victoria, currently home to the musical Wicked, a prequel to the Wizard of Oz.

It means that ATG, set up in 1992 by husband and wife team Howard Panter and Rosemary Squire, will dominate London’s West End, managing more than 11,000 theatre seats.

Its two main competitors are Lord Lloyd-Webber’s Really Useful Group, which runs the London Palladium and the Theatre Royal Drury Lane, and Sir Cameron Mackintosh, whose empire includes the Gielgud theatre.

The deal is being financed from increased bank borrowing and new cash raised from shareholders.

They include property tycoons Sir John and Peter Beckwith, Greg Dyke, the former director-general of the BBC, and Simon Oliver, the outgoing chairman of food group Dairy Crest. Peter Beckwith is ATG’s deputy chairman.

The deal will also transform ATG’s fortunes outside London, adding venues including the Liverpool Empire, Grimsby Auditorium and Edinburgh Playhouse. ATG already owns theatres in Brighton, Glasgow and Milton Keynes and will manage 38,000 seats outside the capital after the buyout.

ATG made a gross profit of £35m in the 12 months to September 2008 but a £603,000 pretax loss. It already has a joint venture with Live Nation — First Family Entertainment — which is producing 12 pantomimes this Christmas.

The deal comes as Live Nation focuses on its music operations. Live music is booming, in contrast to the struggles facing recorded music at the hands of digital piracy.

The company owns or manages venues including Wembley Arena and the Manchester Apollo and has a network of O2 Academies in cities including Glasgow, Liverpool and Birmingham.

A proposed merger between Live Nation and Ticketmaster was last month provisionally blocked by the Competition Commission, echoing concerns of artists and music fans that a combination would have dominated the entertainment scene.

Live Nation remains the biggest concert promoter and venue owner in the UK and has exclusive promotion and merchandising deals with the likes of Madonna and U2.

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