Blue Ant to begin trading on Toronto Stock Exchange as Boat Rocker deal closes
Blue Ant Media has completed its reverse takeover (RTO) of fellow Canadian studio Boat Rocker, with the company set to begin trading on the Toronto Stock Exchange (TSX) later this week.
Subordinate voting shares of Blue Ant will start trading on the TSX under the ticker symbol BAMI on or around August 6 or 7, the company said.
With the conclusion of the deal, Blue Ant CEO Michael MacMillan said the company was “entering our next phase of growth as a modern, global media business.”
“With a strong capital position, a proven content model and operations across key international markets, we’re well-positioned to scale in a rapidly evolving landscape,” he said. “We’re proud to welcome our new shareholders as we execute our strategy to drive long-term value through IP ownership, platform reach and global distribution.”
As part of the RTO, Blue Ant is acquiring three production businesses from Boat Rocker: Insight Productions, Proper Television and Jam Filled Entertainment.
The majority of the remainder of the Boat Rocker business – its scripted, unscripted and kids and family studio units, as well as its distribution arm – is being acquired by a privately owned company led by Boat Rocker principals David Fortier, Ivan Schneeberg and John Young.
Boat Rocker also previously held a minority stake in US management firm The Initial Group, which is being sold to Canadian investment firm Fairfax Financial Holdings as part of the RTO.
Fairfax, led by Indian-Canadian billionaire Prem Watsa, is a significant shareholder in Blue Ant and Boat Rocker and has agreed to backstop various aspects of the deal.
Fortier, Schneerberg and Young said: “This exciting next chapter gives us the independence and flexibility to continue bringing compelling and entertaining stories to audiences around the world across all genres and platforms.
“We’re energised by the opportunity ahead and grateful to our partners, creators and teams for their continued belief in Boat Rocker.”
The official close of the deal comes five months after C21 broke the news that Blue Ant and Boat Rocker were in advanced talks over a deal.
Three weeks later, the companies formally announced the RTO, which MacMillan said will make Blue Ant an active buyer in the international market as it looks to scale up.
Blue Ant has plans to use cash generated from the RTO, and a concurrent equity raise, to invest in several M&A moves, MacMillan told C21 in late March. In its investor material published in conjunction with the RTO announcement, Blue Ant said it sees a “pipeline of opportunities at attractive valuations as over-leveraged/sub-scale competitors are challenged by market conditions.”
These potential deals may not exist in five years, noted MacMillan, who said going to the public markets in 2025 will turbocharge the business in a way that wouldn’t be possible by remaining private.
“We see all sorts of opportunities to not only grow our existing business but to grow through other mergers and acquisitions – and we didn’t want to wait four or five years to grab these, so it seemed like a smart move when we were approached with this opportunity,” he said at the time.
The completion of the deal comes just over a month after it was approved by the Competition Bureau, the Canadian Radio-television and Telecommunications Commission and the Toronto Stock Exchange, in addition to shareholders for both companies.
