30th Sep 2015 07:12
LONDON (Alliance News) - Entertainment One Ltd Wednesday said it has agree to buy 70% of 'Peppa Pig' producer and creator Astley Baker Davies Ltd, which it will fund through a rights issue to raise GBP193.6 million.
Astley Baker Davies jointly holds the ownership rights to the 'Peppa Pig' franchise, a big growth driver for Entertainment One. The company said that through this acquisition it will increase its interest in the related share of the earnings from 'Peppa Pig' to 85% from 50%.
The company said that its largest shareholder, Canada Pension Plan Investment Board, has confirmed it is fully supportive of the acquisition and rights issue.
"Peppa Pig has become a worldwide success and reflects the strength of our ten year partnership working with ABD. Already the number one pre-school property in the UK, Australia, Spain, Mexico and Brazil, and a leader in other territories around the world, the growth opportunities for Peppa Pig are significant," said Chief Executive Officer Darren Throop in a statement.
Elsewhere the company reiterated its outlook for the full year, continuing to expect underlying earnings in line with its expectations. It anticipates its first half earnings will meet its expectations, as a strong performance in television has offset a weaker than expected performance in film.
Entertainment One will announce its results for the half year to end-September on November 17.
Shares in Entertainment One opened down 3.9% at 261.69 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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