Koch parent OKs sale to PE outfit


NEW YORK -- Entertainment One Income Fund, the company that owns Koch Entertainment, has agreed to be acquired by Marwyn Investment Management Llp., a London-based private-equity firm. The deal calls for unitholders of Entertainment Once Income Fund, which trades on the Toronto Stock Exchange, to receive about CAN$3.60 ($3.08) per share, which values the company at about CAN$100 million ($86 million).

Insiders like Entertainment One management, which includes CEO Darren Throop and Koch CEO Michael Koch, who will retain their current ownership stake in the company.

According to a press release, the CAN$3.60 represents a 33% premium over Tuesday's closing price of Entertainment One units and a 46% premium over the 20-day volume weighted average price. It represents a 64% decline from the CAN$10 valuation for each unit of the 2.4 million shares that Koch received when he sold his company to Entertainment One Income Fund, then called ROW Entertainment Income Fund.

The deal, which is subject to approval by regulatory agencies and shareholders, is expected to close in March.

In addition to Koch, Entertainment One owns wholesalers Record on Wheels and Video One as well as retail chain CD Plus in Canada.

Ed Christman is a senior correspondent for Billboard.