Media company Timeweave is set to convert the debt it acquired in UK indie DCD Media in February into a 29.99% stake in the firm.
This makes it the producer-distributor’s largest shareholder, ahead of long-term investor Henderson Group, which has a 28.68% stake, and executive chairman and former CEO David Green, who has 17.43%.
Alternative Investment Market (AIM)-listed Timeweave will convert £595,750 (US$950,255) into 59,750,000 shares, which is just shy of 30% of the company’s share capital, DCD said in a filing today. DCD, which is also on AIM and is valued at around £6.8m based on today’s share price, expects the application to be approved by AIM on April 18.
The development comes after Timeweave came from nowhere to acquire £3.1m of DCD’s debt in February, sending the indie’s share price rocketing by 300%.
Timeweave will still own around £2.4m in debt following the conversion but a formal takeover bid would be needed before it could convert more into shares, as DCD is a listed firm.
Timeweave did not return calls for comment this morning. However, C21 understands meetings between the two companies are proceeding well, with DCD top brass thought to see the new investor as a positive presence.
Timeweave owns a 50% stake in Amalgamated Racing, which holds exclusive broadcast licences for 31 racecourses in the UK and Ireland, and has a wholly owned subsidiary called SportingWins, a ‘hedging agreements’ specialist.
DCD’s assets include Anglo-American entertainment producer September Films, which produces the likes of Penn and Teller: Fool Us for ITV1; factual prodcos Prospect Pictures and Prospect Cymru; and Scottish joint venture Matchlight.
It also recently acquired post-production house Sequence and operates sales arm DCD Rights, publishing division DCD Publishing and DVD label Digital Classics.
Soon after Timeweave’s initial investment in February, DCD’s then-chief executive Green became executive chairman, with September’s CEO Sammy Nourmand taking his previous role.
DCD has been focusing on the US in the past year, with September Films USA and start-up Rize USA both scoring commissions for shows such as Billy the Exterminator.