Entertainment One Ltd.
LSE : ETO

Entertainment One Ltd.

March 29, 2007 02:08 ET

Entertainment One Ltd.: First Day of Trading on AIM

GRAND CAYMEN, CAYMEN ISLANDS--(CCNMatthews - March 28, 2007) - Entertainment One Ltd. (formerly Earl Street Capital Ltd.), a major distributor and producer of home entertainment products in North America, today announces the first day of trading of its Ordinary Shares on the AIM Market of the London Stock Exchange ("AIM") under the ticker code "ETO."

Admission to trading on AIM follows the completion of the acquisition agreed to on 14 February 2007 by Earl Street Capital, an acquisition vehicle controlled by Marwyn Investment Management LLP, of the entire operating business of Entertainment One Income Fund for a total consideration of CAD194 million (£85.5 million), including estimated net debt of CAD68 million (£30 million). Entertainment One Income Fund was previously listed on the Toronto Stock Exchange.

Highlights



-- Placing of the Company's Ordinary Shares successfully completed,
raising approximately £80 million at £1 per share. The Company will have a
market capitalisation of approximately £85m and 84.4 shares in issue when
trading commences this morning.

-- Placing proceeds to be used to fund the cash consideration for the
acquisition (including the costs), to provide additional working capital to
the business and to provide the business with initial funds with which to
pursue its acquisition strategy.

-- Entertainment One is the number one wholesale distributor of DVDs, CDs
and video games in Canada and in Koch Records the leading independent
wholesale distributor in the US.

-- Entertainment One distributes across the entertainment value chain
including distribution to conventional retailers and online retailers as
well as digital distribution of recorded music through download services
such as iTunes.

-- Entertainment One owns an established content and rights business
incorporating exclusive licensing of third party filmed entertainment
content in the US and Canada and the largest independent record label in
the US.

-- Further complementary acquisition opportunities have been identified
in North America and Europe.


James Corsellis, Managing Partner of Marwyn Investment Management LLP, said:

"Following the agreement in February to acquire Entertainment One, we are delighted that the acquisition has completed today and we look forward to building the business into a leading global entertainment content owner and distributor. As well as paying for the acquisition, the funds raised will enable management to execute complementary acquisitions and pursue their strategy of increasing content ownership, expanding into new markets and exploiting the growing demand for digital distribution."

Marwyn and the Company were advised by TD Securities Inc. and Collins Stewart Europe Limited.

Advisers also included Oslers, Hoskin & Harcourt LLP, Mayer Brown Rowe & Maw LLP, Deloitte & Touche LLP and The Salter Group.

About Marwyn Investment Management LLP

Marwyn Investment Management LLP ("Marwyn") is a London-based hedge fund investor specialising in sourcing and then investing alongside experienced management teams with buyout and consolidation strategies. Marwyn makes its investments through both public and private special purpose acquisition vehicles and is backed by some of the world's leading investment institutions. The Marwyn team has carried out acquisitions valued at more than £800 million since September 2004 in sectors including environmental services, insurance, leisure, gaming and food.



This information is provided by RNS
The company news service from the London Stock Exchange



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