Film and TV content producer Entertainment One (ETO) is up 8% to 285.3p this morning as a major share overhang in the stock is finally cleared. Marwyn Value Investors (MVI), an investment trust, is selling off its remaining 17.9% stake in the business to Canada Pension Plan Investment Board for 269p a share.
It brings to an end an impressive investment for the trust managed by James Corsellis and Mark Brangstrup Watts: Entertainment One has delivered around 23% a year on an annualised basis for Marwyn since its original investment in 2007.
Marwyn has been seeking an exit from Entertainment One for most of the last year and completed the sale of 9% of the business in July via an institutional placing at around 330p a share.
Toronto-headquartered Entertainment One is best known for its Peppa Pig pre-school programming but has a content library valued in excess of $1 billion and expects to produce as many as 230 films this year.
Canadian chief executive Darren Throop has previously vented his irritation at investors’ overemphasis on Peppa Pig at the expense of its film and broader TV business. Throop is also considering shifting the company’s listing to New York to benefit from more favourable media valuations achieved there.