TIDMETO
RNS Number : 1940K
Entertainment One Ltd
09 April 2018
Date: 9 April 2018
On behalf of: Entertainment One Ltd.
(the "Company", "eOne", "Entertainment One" or the "Group")
Embargoed until: 0700 hours
Entertainment One Ltd.
Acquisition of UK-based Whizz Kid Entertainment
Entertainment One Ltd. today announces that it has acquired a
70% controlling stake in Whizz Kid Entertainment Limited ("Whizz
Kid"), a UK-based non-scripted television production company, from
the Whizz Kid Sellers. The acquisition further enhances eOne's
non-scripted television production capabilities into the UK, in
line with the Group's strategy.
Based in the UK, Whizz Kid was founded in 2006 by Malcolm
Gerrie, and has gone on to become a fast-growing and successful
non-scripted television production company delivering multiple hit
shows including nine seasons of Ex on the Beach, the popular format
currently being adapted by eOne for MTV in the US, and Lip Sync
Battle UK, and has long-standing relationships with key UK
broadcasters including the BBC, Sky, Channel 4, ITV and Channel
5.
eOne has acquired a 70% controlling stake in Whizz Kid for
consideration of GBP6.9 million, which will be satisfied by payment
of GBP5.0 million in cash and the issuance of 637,952 Entertainment
One Ltd. common shares (the "Consideration Shares"). A distribution
of excess cash held by Whizz Kid on closing is expected to result
in a payment of approximately GBP1.6 million to the Whizz Kid
Sellers. Additionally, put and call options have been agreed, with
consideration at a capped amount, which will enable eOne to acquire
the remaining 30% stake after a five year period. Whizz Kid's
results will be fully consolidated in eOne's financial
statements.
In its audited financial statements for the year ended 31 March
2017, Whizz Kid reported revenues of GBP14.2 million, profit before
tax of GBP3.3 million and gross assets of GBP6.3 million. Adjusted
EBITDA for the year ended 31 March 2017 amounted to GBP1.6 million
(2016: GBP1.0 million).
Malcolm Gerrie and Lisa Chapman will continue to lead Whizz Kid
and, as part of the transaction, have entered into new, long term
employment agreements. In addition, eOne has also entered into a
distribution agreement with Whizz Kid, which will provide the Group
with access to high quality, non-scripted programming and formats
for exploitation globally.
The Whizz Kid Sellers are comprised of: Ingenious Capital
Management Ltd., Malcolm Gerrie, Lisa Chapman, Katherine Allen,
Lisa McCormack, Terence Back, Tracey Lloyd, Shane Murray and
Caroline Roseman.
Following completion, applications will be made for the
Consideration Shares to be admitted to a premium listing on the
Official List and to trading on the London Stock Exchange's Main
Market for listed securities (together, "Admission"). It is
expected that Admission will take place at 8.00 a.m. on 12 April
2018.
Total voting rights
Following Admission becoming effective, the Company's issued
share capital will consist of 460,749,271 common shares with voting
rights. Therefore, the total number of voting rights in the Company
will be 460,749,271. This figure may be used by shareholders in the
Company as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change to their interest in, the Company under the Financial
Conduct Authority's Disclosure Guidance and Transparency Rules.
Darren Throop, Chief Executive Officer, commented:
"The addition of Whizz Kid to eOne's non-scripted television
business gives us a strong footing in one of the most creative
markets in the world. I'm pleased to welcome Malcolm, Lisa and the
Whizz Kid team to the Group, and I'm excited about how this new
relationship will deliver great new series on both sides of the
Atlantic."
Enquiries:
Rebecca Sanders-Hewett +44(0)20 3865
Alma PR Susie Hudson 9667
Entertainment Joe Sparacio/ +44(0)20 3714
One Ltd. Patrick Yau 7931
Notes to Editors:
Entertainment One Ltd. (LSE:ETO) is a global independent studio
that specialises in the development, acquisition, production,
financing, distribution and sales of entertainment content. The
Company's diversified expertise spans across film, television and
music production and sales, family programming, merchandising and
licensing, and digital content. Through its global reach and
expansive scale, powered by deep local market knowledge, the
Company delivers the best content to the world.
Entertainment One's robust network includes film and television
studio The Mark Gordon Company; content creation venture Amblin
Partners with Steven Spielberg, DreamWorks Studios, Participant
Media, and Reliance Entertainment; newly-launched MAKEREADY with
Brad Weston; leading feature film production and global sales
company Sierra Pictures; unscripted television production company
Renegade 83; world-class music labels Dualtone Music Group and Last
Gang; and award-winning digital agency Secret Location.
The Company's rights library, valued at US$1.7 billion (as at 31
March 2017), is exploited across all media formats and includes
about 80,000 hours of film and television content and approximately
40,000 music tracks.
www.entertainmentone.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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