Senior lenders were not satisfied with deal
Canuck producer and distributor Entertainment One’s attempt to take over Halifax-based DHX Media has fallen apart.
The companies announced Thursday that the deal, unveiled Sept. 29, has been scuttled because Entertainment One’s senior lenders were not satisfied.
Entertainment One had offered to pay C$68 million ($55 million) in stock and cash for DHX, which produces and distributes TV programming including CBC hit “This Hour has 22 Minutes” and which owns Toronto-based Decode Entertainment.
But after DHX’s share price lost nearly half its value since Sept. 29, Entertainment One lenders, notably JPMorgan, wanted the cash part of the purchase taken out of the agreement in favor of a stock-only deal. But the two parties were unable to agree on the terms.
A key part of the original deal for Entertainment One was that its takeover of DHX, which is listed on the Toronto Stock Exchange, would’ve given Entertainment One a listing on Canada’s leading exchange.
Now that the DHX deal is off the table, Entertainment One plans to seek a listing on the Toronto Stock Exchange. It will retain its listing on London’s Alternative Investment Market.