HIT Continues to Back Apax Takeover Bid

[Traveling Matt]

While leading kids programming producer/distributor HIT Entertainment appears to be in a bidding war for a takeover, its independent directors reiterated support for a $917 million bid from equity firm Apax partners and asked other suitors to file actual proposals by May 13, 2005.

Lions Gate Entertainment and Classic Media said they were interested in acquiring the kids company but have not made actual bids. HIT has provided the potential competing offers with extensive access to due diligence materials and to meetings with the management of the company. They must file a proposal by the deadline or they will be unable to make an offer for the company for six months thereafter.

The independent directors, who are advised by KPMG Corp. Finance, consider the Apax proposals are in the best interests of HIT Shareholders as a whole. The Independent Directors note that by approving the Apax proposals April 28 would ensure, subject to the court sanctioning the Scheme, that the cash offer at 300 pence per share can be completed, yet still allow further time for the potential competing offers to make a superior offer to take to the shareholders.

If HIT shareholders do not approve the Apax proposals at the HIT extraordinary general meeting and court meeting, they will immediately lapse, with the possibility that no further offer is received for the company at or above 300 pence per share.

Established in 1989, HIT Ent. (www.hitentertainment.com) is one of the world's leading preschool children's entertainment producers and rights owners. With operations in the U.S., U.K., Canada, Japan and Germany, the company's activities span television production and distribution, home entertainment, consumer products, publishing and live events. HIT's famous characters which include classic global brands such as BOB THE BUILDER, BARNEY, THOMAS & FRIENDS, PINGU, KIPPER and ANGELINA BALLERINA, which are enjoyed by children in more than 150 countries and territories.

Courtesy of Animation World Network - April 19, 2005

 

[Drtooth]

This is pretty unnerving. It's one of those things when we hope nothing bad will go down, bur deep down we know something's gonna happen.

Personally, I don't give a crap about most of their properties (Pengu and Thomas seem the only really interresting things) but I'm worried about how this effects the Henson partnership deal. Since Hit got the distribution rights to the Fraggles, we've seen an increase in the property's popularity. We had 4 out of five fraggle plush so far, and we overcame the then impossible dream of Fraggle DVD's.

But it's very interresting that Classic Media (the copywrite vulture) is involved with this, as they were very close to purchasing the Muppets.

 

[Kimp the Shrimp]

I'm just hoping that apex ( or whoever) ends up with the Fraggles knows the Value of this Comidity cause taht is all it has become to them and us where is the LOVE jim Created?

 

[EleganceLiberty]

After witnessing Classic Media eviscerate all the things I love about 'VeggieTales' over the last few years, they BETTER keep their filthy mitts off of 'Fraggle Rock'. =|

 

[Traveling Matt]

From HIT's website (HitEntertainment.com)

"Further to HIT's announcement of 19 April 2005, HIT announces that one of the potential competing offerors which was conducting due diligence has stated that it does not intend to make an offer for HIT and has therefore ceased its due diligence exercise.

Lions Gate Entertainment continues to conduct a due diligence review, although no proposal has been received from Lions Gate Entertainment to date."

 

[Traveling Matt]

From HitEntertainment.biz

"Recommended Proposals for the cash acquisition of HIT by Sunshine Acquisition Limited - Update

HIT notes the announcement by Lions Gate Entertainment ("Lions Gate") this morning that Lions Gate does not intend to make an offer for the Company.

The Independent Directors of HIT are not in discussions with any other potential competing offeror for the Company. It is therefore expected that the Scheme will become effective on 24 May 2005 following the Court Hearing to sanction the Scheme on 23 May 2005."

**Sunshine Acquisition Limited is the group formed by Apax.

http://www.hitentertainment.biz/hit/ir/financialNewsArticle.jsp?ref=81

 

[Traveling Matt]

Offer Update

From HitEntertainment.biz

"HIT today announces that the scheme of arrangement pursuant to which *Sunshine Acquisition Limited is acquiring HIT has today become effective. Accordingly, the listing of the ordinary shares in HIT is expected to be cancelled at 7.30a.m. tomorrow, 25 May 2005.

It is expected that the consideration payable to HIT's former shareholders will be despatched by 8 June 2005."

*Sunshine is the group formed by Apax