Entertainment One Regulatory News (ETO)

29 Mar 2007 07:42

Entertainment One Ltd29 March 2007 Revision to release issued at 07:02 BST, 29 March 07 29 March 2007 Entertainment One Ltd. First day of trading on AIM Entertainment One Ltd. (the "Company") (formerly Earl Street Capital Ltd.), amajor distributor and producer of home entertainment products in North America,today announces the first day of trading of its Ordinary Shares on the AIMMarket of the London Stock Exchange ("AIM") under the ticker code "ETO". Admission to trading on AIM occurs upon the completion of the acquisition agreedto on 14 February 2007 by the Company and coordinated by Marwyn InvestmentManagement LLP, of the entire operating business of Entertainment One IncomeFund for a total consideration of CAD194 million (£85.5 million), includingestimated net debt of CAD68 million (£30 million). Entertainment One Income Fundwas previously listed on the Toronto Stock Exchange. Highlights •Placing of the Company's Ordinary Shares successfully completed, raising approximately £80 million at £1 per share. The Company will have a market capitalisation of approximately £85m and 84.4m shares in issue when trading commences this morning •Placing proceeds to be used to fund the cash consideration for the acquisition (including the costs), to provide additional working capital to the business and to provide the business with initial funds with which to pursue its acquisition strategy •Entertainment One is the number one wholesale distributor of DVDs, CDs and video games in Canada as well as a leading independent wholesale distributor in the US •Entertainment One distributes across the entertainment value chain including distribution to conventional retailers and online retailers as well as digital distribution of recorded music through download services such as iTunes •Entertainment One owns an established content and rights business incorporating exclusive licensing of third party filmed entertainment content in the US and Canada and in Koch Records the largest independent record label in the US •Further complementary acquisition opportunities have been identified in North America and Europe James Corsellis, Managing Partner of Marwyn Investment Management LLP, said: "Following the agreement in February to acquire Entertainment One, we aredelighted that the acquisition has completed today. As well as paying for theacquisition, the funds raised will enable management to execute complementaryacquisitions and pursue their strategy of building a leading globalentertainment content owner and distributor by increasing content ownership,expanding into new markets and exploiting the growing demand for digitaldistribution." Darren Throop, Chief Executive Officer of Entertainment One, said: "I am extremely excited to lead Entertainment One onto AIM. The positioning ofthe Company on AIM will give us added capability to enhance and expand thebusiness and to pursue our strategy to develop the group into a leadinginternational entertainment content ownership and distribution company." The Company was advised by TD Securities Inc. and Collins Stewart Europe Limited Advisers also included Osler, Hoskin & Harcourt LLP, Mayer Brown Rowe & Maw LLP,Deloitte & Touche LLP and The Salter Group. For further enquiries contact: Faeth Birch/Ed Simpkins: Finsbury Group +44 20 7251 3801 About Marwyn Investment Management LLP Marwyn Investment Management LLP ("Marwyn") is a London-based hedge fundinvestor specialising in sourcing and investing alongside experienced managementteams with buyout and consolidation strategies. Marwyn makes its investmentsthrough both public and private special purpose acquisition vehicles and isbacked by some of the world's leading investment institutions. The Marwyn teamhas carried out acquisitions valued at more than £800 million since September2004 in sectors including environmental services, insurance, leisure, gaming andfood. This information is provided by RNS The company news service from the London Stock Exchange