DHX Combines With Entertainment One
Created 09/28/2008 - 23:00
DHX Media has entered into an agreement to combine its business operations with those of Entertainment One Limited. The deal has been recommended unanimously by the boards of directors of both DHX and E1 and values the total issued share capital of DHX at approximately $68 million Canadian representing $1.59 Canadian per share. The combined company will be listed on both AIM and the Toronto Stock Exchange.
DHX is an international producer and distributor of television programming and interactive content based in Canada with operations in the U.K., focused on the children's and youth television market. DHX owns a library of 2,200 half-hours of mostly children’s content library and to date has entered into 1,300 separate television license agreements with 250 customers worldwide.
E1 is an international entertainment content ownership and distribution company with operations in Canada, the U.S., the U.K., Holland and Belgium. E1 focuses on the acquisition of film, television and music content and exploits these rights in all media across its international distribution network. The company has recently entered into a number of output agreements with independent film producers, including Yari, THINKFilm and Summit Entertainment covering both the Canadian and U.K. markets.
The transaction is expected to be completed by the end of December 2008 and will be structured as a reverse takeover of E1 by DHX and will require approval of the shareholders of each of DHX and E1. Once the deal is done, the company will be named Entertainment One. Key managers will remain with DHX.