Marwyn to raise stake in Entertainment 1
British equity investor to increase its holding to 48.5%TORONTO -- British equity investor Marwyn Neptune Fund on Friday proposed to raise its stake in Canadian producer and distributor Entertainment One from 27.7% to 48.5% with a $4.8 million buyout offer to existing shareholders.
The partial cash offer of 12.5 pence (17 cents) per-share to existing E1 shareholders is conditional on London-based Marwyn receiving at least 1 million shares and a positive shareholders vote at a March 26 special meeting.
Cayman Island-based E1, which has its executive offices in Toronto and recently cancelled plans for a re-listing on the Toronto Stock Exchange (TSX), said Marwyn did not intend to take the media group private with an eventual takeover offer.
The British hedge fund in March 2007 acquired E1 for $168 million, took it off the TSX as an income fund and re-floated it on London's Alternative Investment Market.
But shares in E1 have since fallen sharply to a current 52-week low of 12.5 pence.
James Corsellis, a managing partner of Marwyn's investment management division, in a statement said Marwyn Neptune aimed to take advantage of a low market valuation to increase its long term investment stake.