Investors sent shares in Entertainment One (ETO) down 9 per cent after management said it would shell out £140m for a 70 per cent stake in Astley Baker Davies, a UK animation company that owns 50 per cent of the rights to one of the film and TV distributor's top TV property, Peppa Pig. The deal effectively raises Entertainment One's stake in Peppa Pig from 50 per cent to 85 per cent.
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Management plans to raise £194m via a heavily discounted rights issue, providing an additional £50m to fund further expansion. Broker N+1 Singer is reviewing its forecasts. It previously expected EPS of about 19p in the year to March 2016.
