TV programme producer and services provider Boomerang Plus is being acquired by its management for 77p a share, although this values the company at less than 10 times prospective earnings.
The bid price is 51% above the previous day’s closing price. In November 2007, the flotation price was 158p a share.
Boom Pictures, which is backed by Lloyds Development Capital (LDC), will pay £7.1m for the Wales-based TV company and it already has acceptances for 80.9% of the company‘s share capital. Lorraine Heggessey is joining the management team and will have a 13.9% stake in Boom Pictures. She is a former controller of BBC One and boss of Talkback Thames.
LDC is investing £200m in the TV sector over two years. Boomerang Plus has been a consolidator in the sector and the additional backing will make it easier to finance larger deals.
Revenues dipped slightly from £16.3m to £16m in the six months to November 2011 due to lower spending by S4C. Net cash was £2.96m at the end of November 2011 but there was also £628,000 of potential deferred consideration. House broker finnCap had forecast a 2011-12 profit of £1.1m.
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