Entertainment One, the company which distributes the Walking Dead and co-owns Peppa Pig, has dropped more than 10% after a major shareholder disposed of nearly £90m worth of shares.
Investment group Marwyn, which has backed the company through its move from Aim to the main market, has sold 26.5m shares at 330p each, in a placing to institutional shareholders.
The stake represents 9% of the company, and leaves Marwyn with 17.9%. As a result Marwyn representative James Corsellis is stepping down from the company’s board.
It has agreed not to sell further shares for 90 days following the placing, without the agreement of advisor JP Morgan Cazenove. Corsellis said:
This remains an important investment for Marwyn and we continue to be excited by the scale of opportunity that faces Entertainment One going forward.
Entertainment One’s shares are down 37.6p at 325.3p.
Peel Hunt analyst Malcolm Morgan said:
Investors should now anticipate a good trading update at the end of July or early August. Further placing may also be anticipated, given the short lock in period, the recent appointment of a new joint broker and Marwyn’s surrender of board positon. Hold.
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