Aug 23 (Reuters) - Shares of Entertainment One rose nearly 30% on Friday, a day after U.S. toy maker Hasbro Inc offered to buy the owner of popular children’s television show “Peppa Pig” for about $4 billion in cash.
The transatlantic deal gives Hasbro, which has seen growth with Marvel’s “Avengers” toys, access to Entertainment One’s lucrative infant and preschool market.
Brokerage RBC, which raised its price target for Entertainment One, said it was “not ruling out a competing bid, but eOne has likely done its homework”.
Under the deal, Entertainment One’s shareholders will receive 5.6 pounds per share, representing a premium of 26.4% to Thursday’s close.
“For Hasbro to buy Entertainment One for the Family & Brands division makes a lot of sense, adding Peppa Pig, PJ Masks and the newer Ricky Zoom brands to its licensing portfolio,” Fiona Orford Williams, Director, Media Analyst, Edison Group, said.
“It is much less clear how the film, TV and music division fits in the enlarged group.”
Reporting by Tanishaa Nadkar and Noor Zainab Hussain in Bengaluru; Editing by Arun Koyyur