Management at DHX Media Ltd. of Halifax is acknowledging that Sakthi Global Holdings Ltd. — a company with roots in India — has made an unsolicited merger proposal on Tuesday, but that’s about all it knows.
DHX Media owns the Teletubbies, Strawberry Shortcake, Caillou, Inspector Gadget and Degrassi franchises, and is part owner of the famed Peanuts franchise.
In a news release, DHX said it wants Sakthi Global Holdings to respond to some questions before it agrees to review the offer. The Halifax company said Sakthi Global Holdings has not yet responded to its request for more information.
DHX Media management said in a news release that it has not been able to verify the ability of Sakthi Global Holdings to carry out the proposed transaction based on the information it received from Sakthi Global.
“DHX Media’s board of directors will consider and evaluate any formal offer that is received in due course,” DHX stated. “There can be no certainty that a transaction will take place with Sakthi Global Holdings or any other party.”
Sakthi Global reportedly seeking majority status
India’s BW Businessworld magazine reported that Sakthi Global Holdings is offering DHX shareholders $5.32 per share upon the completion of a merger with DHX Media. The $5.32 per share would be payable to DHX Media shareholders and will be comprised of $1.32 per share in cash and $4 in common stock of the merged entity.
DHX shares, which trade on the TSX, closed on Tuesday at $1.99, after spiking to $2.02 during intra-day trading. On Wednesday DHX shares closed at $1.97.
Sakthi Global shareholders would emerge as the majority owner of the combined companies, according to the online magazine.
The merger offer is contingent upon 80 per cent of the shareholders of DHX Media accepting the offer and voting in favour of the merger at a special meeting of shareholders to be convened for the purpose of voting on the proposal made by Sakthi Global Holdings Ltd., it was reported by BW Businessworld.
DHX Media Ltd. bills itself as a global children’s content and brands company, recognized for a number of high-profile properties. It owns “the world’s largest independent library of children’s content,” at 13,000 half-hours.
DHX licenses its content to broadcasters and streaming services worldwide and generates royalties through its global consumer products program. And, through its subsidiary WildBrain, DHX Media operates one of the largest networks of children’s channels on YouTube.
Sakthi Global Holdings is reported by BW Businessworld to be a unit of Sakthi Global India, a $1.2-billion Indian conglomerate that has been in business for more than 100 years. It is the holding company of Sakthi Automotive Group, a global automotive supplier that designs, engineers and manufactures systems and technology for various vehicles.
Sakthi Automotive Group is reported to be global manufacturer of aluminum and iron chassis and powertrain components for major auto manufacturers, including General Motors, Ford Motors, Volkswagen, Daimler, Volvo, Toyota, Renault-Nissan and BMW.
DHX Media management warned in its news release that actual results or events may differ materially from those expressed or implied in the offer.