MONTREAL –Canada’s leading French-language TV network, TVA Group, has made a friendly takeover bid for Motion Intl., one of the country’s top producers, with an offer of C$5.45 ($3.75 per share) or approximately $89 million.
The offer will be made via a holding company 70% owned by TVA and 30% by Capital Communications, a subsidiary of Quebec government pension-fund manager the Caisse de Depot et Placement du Quebec.
The merged company, to be named TVA Intl., will include TVA’s affiliate TVA Intl., which is its international production arm, and most of the assets of Motion Intl. The new company will be Canada’s second-largest production company and will be Canada’s top TV distributor, largely through its joint-venture TV sales company, Fox/Motion.
Motion’s board of directors has made a commitment to recommend to shareholders that they accept the offer.
The deal is subject to the completion of a management buyout of Motion’s Canadian-content production activities, with the creation of a new company to own and operate this Motion division.
In order to help finance the bid, TVA Group will make a public share issue when market conditions permit. It has arranged a $69 million back-up credit facility in the meantime. The offer is expected to close May 5.
Motion’s shares on the Toronto exchange were up 7% to $3.58, while TVA’s shares were down 3% to $22.