Entertainment One Regulatory News (ETO)

29 Mar 2007 07:02

Entertainment One Ltd29 March 2007 29 March 2007 Entertainment One Ltd. First day of trading on AIM Entertainment One Ltd. (formerly Earl Street Capital Ltd.), a major distributorand producer of home entertainment products in North America, today announcesthe first day of trading of its Ordinary Shares on the AIM Market of the LondonStock Exchange ("AIM") under the ticker code "ETO". Admission to trading on AIM follows the completion of the acquisition agreed to on 14 February 2007 by Earl Street Capital, an acquisition vehicle controlled by Marwyn Investment Management LLP, of the entire operating business of Entertainment One Income Fund for a total consideration of CAD194 million (£85.5 million), including estimated net debt of CAD68 million (£30 million).Entertainment One Income Fund was 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 84.4 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 and in Koch Records the 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 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 and we look forward to building the business into a leading global entertainment content owner anddistributor. As well as paying for the acquisition, the funds raised will enablemanagement to execute complementary acquisitions and pursue their strategy ofincreasing content ownership, expanding into new markets and exploiting thegrowing demand for digital distribution." Marwyn and the Company were advised by TD Securities Inc. and Collins StewartEurope Limited. Advisers also included Oslers, Hoskin & Harcourt LLP, Mayer Brown Rowe & MawLLP, 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 then investing alongside experiencedmanagement teams with buyout and consolidation strategies. Marwyn makes itsinvestments through both public and private special purpose acquisition vehiclesand is backed by some of the world's leading investment institutions. The Marwynteam has carried out acquisitions valued at more than £800 million sinceSeptember 2004 in sectors including environmental services, insurance, leisure,gaming and food. This information is provided by RNS The company news service from the London Stock Exchange