The BBC reports that HMV has agreed to sell its Waterstone's book chain to a fund controlled by Russian billionaire Alexander Mamut for £53m.

Mr Mamut already owns 6% of HMV, which has issued a string of profits warnings this year.

The sale to A&NN Capital Fund Management still needs shareholder approval, but HMV said the deal should be finalised by the end of June.

Mr Mamut has been linked with a deal to buy Waterstone's for a number of weeks.

HMV announced in March that it was exploring options to sell the business.