Statement regarding Entertainment One
ITV plc ("ITV") notes the announcements by Entertainment One Ltd. ("eOne") and confirms that it has made a proposal to the Board of eOne to combine the two companies. The Board of eOne has rejected this proposal.
ITV has proposed an offer for eOne (the "Proposal") of 236 pence per eOne share in cash valuing the entire share capital of eOne at around £1,030 million.
The Proposal represents a significant premium over the undisturbed eOne share price, prior to the impact of recent bid speculation.
ITV has a clear strategy that, over recent years, has created significant value for shareholders. A key part of that strategy is continuing to build a scaled international content and global distribution business, with a focus on US scripted content. ITV believes that the proposed combination with eOne has strong strategic rationale and would further accelerate ITV's rebalancing of the business.
Further information
The Proposal represents a premium of:
· 19.3% over eOne's share price of 197.90 pence on 8 August 2016, the last business day preceding the Proposal;
· 41.1% over eOne's weighted average share price of 167.28 pence in the 1 month period to 11 July 2016, representing the last business day prior to further speculation about ITV's interest in eOne; and
· 46.7% over eOne's weighted average share price of 160.89 pence in the 6 month period to 11 July 2016.
The Proposal is subject to normal diligence and any transaction would require Board approval and customary other approvals.
ITV also reserves the right to withdraw, vary or amend the Proposal, in whole or in part, at any time. There can be no certainty that any transaction will ultimately take place, nor as to the terms on or structure by which any such transaction might be constituted.
ITV (LSE: ITV, www.itv.com) is an integrated producer broadcaster, operating the largest commercial family of channels in the UK. In addition to traditional broadcasting, ITV delivers content on demand through numerous platforms, both directly and via the ITV Hub. ITV Studios produces content for both ITV's own channels and third parties in the UK and increasingly overseas. ITV's distribution business sells finished programmes and formats worldwide.
For further information on ITV, please go to www.itvplc.com/about/what-we-do
For further enquiries please contact:
Investor Relations
Pippa Foulds +44 20 7157 6555 or +44 7778 031097
Media Relations
Mary Fagan +44 20 7157 3965 or +44 7736 786448
Mike Large +44 20 7157 3021 or +44 7768 261528
Forward looking statements
This press release contains statements which are not based on current or historical fact and which are forward looking in nature. These forward looking statements reflect knowledge and information available at the date of preparation of this press release and ITV undertakes no obligation to update these forward looking statements. Such forward looking statements are subject to known and unknown risks and uncertainties facing ITV including, without limitation, those risks described in this press release, and other unknown future events and circumstances which can cause results and developments to differ materially from those anticipated. Nothing in this press release should be construed as a profit forecast.
This announcement is not intended to, and does not, constitute, represent or form part of any offer, invitation or solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise.
The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law or regulation and therefore any person who comes into possession of this announcement should inform themselves about, and comply with, such restrictions. Any failure to comply with such restrictions may constitute a violation of the securities laws or regulations of any such relevant jurisdiction.
