Canadian distrib OKs Marwyn takeover


TORONTO -- Canadian specialty distributor Entertainment One Income Fund said Friday that its shareholders have overwhelmingly accepted a takeover offer from British equity firm Marwyn Investment Management worth CAN$118 million ($101 million), excluding about CAN$68 million ($57.5 million) in debt.

Toronto-based Entertainment One said that 98% of shareholders in the specialty DVD, CD and video game distributor approved the offer that earns them CAN$3.60 ($3.05) per unit.

Entertainment One, which will shortly be delisted from the Toronto Stock Exchange, put itself up for sale in late October after hiring mergers and acquisitions specialist Genuity Capital Markets to assess possible bidders.

As part of the takeover deal, Entertainment One will sell its Canadian and U.S. operations to Earl Street Capital Ltd., a company controlled by Marwyn Investment Management.

Marwyn last summer expressed interest in buying rival Canadian distributor Movie Distribution Income Fund from parent Alliance Atlantis Communications Inc., but nothing came of that overture.

Instead, Movie Distribution Income Fund was recently purchased by U.S. equity firm Goldman Sachs as part of a larger CAN$2.3 billion ($1.9 billion) deal for Alliance Atlantic Communications.