MONTREAL — Canadian film company Alliance Atlantis Communications announced Wednesday it has completed an initial public offering for its Movie Distribution Income Fund, generating gross proceeds of approximately C$231 million ($174 million).
Through the income trust, Alliance Atlantis is selling a 43% stake in its distribution biz. The underwriters also have an option to purchase an extra 2.33 million trust units or an additional 6%. Alliance Atlantis will retain control of the distrib with at least a 51% interest.
Alliance Atlantis was the No. 1 distributor in Canada last year, out-performing all the Hollywood studios, with a market share of 19%. It has long-term output deals with several U.S. film distributors including New Line and Miramax.