Film and television distribution company Entertainment One (ETO) has announced the long-mooted acquisition of Canadian film distributor Alliance Films for C$225m (£144m) and even the prospect of a share placing to pay for the deal has not stopped the share price rising.
The deal will create the biggest independent film distributor in both the UK and Canada. It also ends a period of uncertainty for shareholders which at one point earlier this year saw the company in discussions over the sale of the business. Alliance has a strong catalogue, with films such as Pulp Fiction, Lord of the Rings and The King’s Speech.
Entertainment One is raising £110m gross in a placing at 150p a share to help fund the deal, which bolsters the film division to complement the company's strength in television programmes.
