Shed Media Plc (LON:SHDP), the TV production group behind the likes of Waterloo Road, Supernanny and New Tricks, has agreed a deal that will see the business taken private by its management team, backed by US entertainment group Warner Bros. Shed has recommended shareholders accept an offer price of 115p per share in cash, which valued the company at £99.9m and represents a 72.9% premium to its share price at yesterday’s market close. Shares in the company soared by 34.13% in early trade on the news.

Shed is a leading creator and distributor of television content and produces long-running television brands in the genres of drama, factual, documentary, factual entertainment and history. It owns the rights to its extensive programme library worldwide, and exploits them through its in-house distribution company, Outright. Heather Rabbatts, the independent chairman of Shed said: “The proposals recognise the achievements of the board, management and employees of Shed in building a market leading creator and distributor of television content. Warner Bros. Television Group is a globally renowned entertainment business and will provide the Shed group with the platform from which to support and deliver its growth plans.”

Warner Bros. Entertainment is a global player in entertainment and related businesses across all current and emerging media and platforms. A Time Warner company, the fully integrated, broad-based studio is home to one of the most successful collections of brands in the world and stands at the forefront of every aspect of the entertainment industry from feature film, television and home entertainment production and worldwide distribution to DVD, digital distribution, animation, comic books, video games, product and brand licensing, international cinemas and broadcasting.
Ronald Goes, Head of International TV Production, on behalf of Warner Bros., said: The United Kingdom is an important television market, with a robust, thriving local production sector. The acquisition of Shed provides Warner Bros. Television Group with immediate scale in UK production and complements our existing television production and distribution businesses. The acquisition of Shed will provide Warner Bros. Television Group with a solid foundation as we extend our local television production business to other major territories.”

As part of the deal structure, Warner Bros. has also proposed an alternative to the cash offer, including a combination of cash, “B” shares and loan notes. It is understood that the takeover vehicle has secured irrevocable…

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