25th Aug 2016 09:54
LONDON (Alliance News) - ITV PLC Thursday said it has withdrawn its proposal to acquire Entertainment One Ltd, after the television and film producer rejected a the bid earlier this month.
ITV made an offer for Entertainment One at 236.00 pence per share, valuing it at around GBP1.03 billion, in early August, but this bid was rebuffed by Entertainment One's board as it said it "fundamentally undervalues" the business.
ITV said Thursday that it has a "clear view of the value" of Entertainment One, and it "appears this value is different to the level at which the board of eOne would currently engage in a more formal process."
The broadcaster said it continues to believe in the strategic logic and potential benefits of the acquisition, and said it has a "clear strategy to build a stronger, more diversified international business and will continue its disciplined approach to evaluating its healthy pipeline of potential investment opportunities."
This follows a report from the Sunday Telegraph just a few days ago that a top-10 investor in Entertainment One said it would not accept a valuation of less than the 330 pence per share paid for Entertainment One shares in a placing a year ago. Adjusting for the rights issue Entertainment One conducted, this would mean shareholders would want around 284p per share, compared to ITV's 236p bid.
Shares in ITV were up 1.5% at 205.00 pence Thursday morning, whilst Entertainment One was down 16% at 211.80p.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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