Entertainment One share price jumps as Canada Pension Fund buys £142m majority stake from Marwyn Value Investors
A Canadian pension fund has splashed millions on taking a majority stake in Entertainment One, the film and TV company behind the global hit children's show Peppa Pig.
Shares in the company, which also distributes movies such as the Hunger Games, jumped by more than seven per cent in morning trading as the Canada Pension Plan Investment Board (CPPIB) paid £142.2m to buy a 17.9 per cent stake from Marwyn Value Investors, or £2.69 per share, yesterday's closing price.
"We look forward to welcoming CPPIB as a significant shareholder of EOne. CPPIB has a strong track record of focusing on the long-term success of the companies in which it invests and we are excited that it will play a part in the EOne story as we execute our strategy to double to size of the business over the next five years," said chief executive Darren Throop.
Marwyn sold off a nine per cent holding in the FTSE 250 company in July and today's sale reduces its interests in the company to zero after first investing in 2007.
EOne is the largest film and TV company listed in London, where it plans to remain. The company rejected claims earlier this year that it was considering crossing the Atlantic to switch to a New York listing to gain more appreciation from investors and boost its valuation.
The firm was the biggest riser on the FTSE 250 and is on track for its sharpest one-day move in around 17 months.