DHX preps share issue

TeletubbiesCanada and US-listed DHX Media has launched a share offer and will use the proceeds, among other things, for potential acquisitions.

The company, shares in which started trading on the US-based NASDAQ exchange last month, said its public share offering will comprise 8,700,000 variable voting shares and common voting shares in the kids and family producer, distributor and channel operator.

The variable voting shares will be listed on the NASDAQ and Toronto Stock Exchange and the common voting shares on the TSX.

DHX said it intends to use cash generated by the offering “to repay borrowings under its term credit facility and for general corporate purposes, including potential acquisitions”.

The company has been aggressively growing through acquisitions in recent years with deals including buying Degrassi producer Epitome, the Disney Junior channel in Canada and the Ragdoll Worldwide library, which includes the classic Teletubbies brand.

A final price per share will be determined when the marketing process for the offering is complete.