Entertainment One Secures Investor Approval for $175.7 Million Share Placing
TORONTO - As it gets set to acquire rival Alliance Films, Entertainment One has secured shareholder approval for a UK share placing to raise $175.7 million.
The issue on the London Stock Exchange, where the Toronto-based company trades, is for 73.3 million new shares at 150 pence ($2.42) each.
Entertainment One also issued a trading update to LSE investors Monday that indicated first half earnings will be lower than expected, even as revenues end up higher than anticipated, due to the timing and increased number of theatrical releases.
The Canadian distributor, which has increased its investment in filmed entertainment, released over 85 film titles theatrically during the first six month period, against 74 titles in the same period last year, and delivered over 130 half hours of TV programming, compared to 73 half-hours in the first half of last year.
Entertainment One will reveal its interim results on Nov. 12 2012.
The Canadian company has proposed acquiring Alliance Films as part of a deal worth potentially $277 million after earn-outs and tax provisions.
Entertainment One aims with the the deal to become the largest indie distributor in the Canadian and U.K. markets.