DCD Media suitor Timeweave and fellow shareholder Henderson have put forward plans that would allow them to take majority control of the UK indie.
Now, together with another DCD shareholder, Henderson, the firm is looking to convert additional loan notes in a move that would give Timeweave 49.99% of DCD’s enlarged share capital and allow it to increase its stake beyond the 50% mark, “should it wish to do so.”
The proposal includes a new share incentive scheme for DCD employees (the company houses production outfits including September Films, Rize, Prospect Pictures, Prospect Cymru and Matchlight), as well as making Timeweave directors David Craven and Richard McGuire non-exec directors of DCD “as soon as possible.”
It’s the first time Timeweave has gone public with its reasons for taking an interest in DCD.
“Timeweave plans to assist DCD to financially stabilise its business by relieving it of its significant debt burden and then developing its business model further and returning the company to growth,” it said in a statement.
“DCD’s core production element is highly scalable and, with investment, could be both enhanced in its current markets and diversified into new areas of production.
“This, along with the potential acquisition of content catalogues and investment in multi-media platforms, would drive enhancement to the distribution and rights businesses.”
Timeweave added that while it intends to undertake a detailed business and operations review of DCD with the current management, and that this could result in an organisational restructure, it didn’t expect the process to have a “material effect on the other employees of the DCD Group.”