British-based Pinewood Group in a July 28 release said it reached a takeover agreement with property investment firm Venus Grafton for approximately $426 million. That said, business at Pinewood Atlanta Studios in Fayetteville will continue as usual.
A July 28 release by Pinewood Group said, “The Pinewood Board is pleased to confirm the progress of this strategic review process and announces that it has reached agreement with Venus Grafton Sarl (“Venus Grafton”), an indirect wholly-owned subsidiary of PW Real Estate Fund III LP (“PW Fund III”), on the key terms of a possible cash offer for Pinewood by Venus Grafton or one of its direct or indirect wholly-owned subsidiaries (“Bidco”) (the “Possible Offer”) which, if made, the Pinewood Board intends to recommend to Pinewood shareholders (subject to reaching agreement on standard terms and conditions customary for a firm offer of this nature).”
The stated price was approximately $426 million.
As for what the sale would mean for Pinewood Atlanta Studios, Pinewood Atlanta Vice President for Operations Brian Cooper said there will be no change, adding that it will be “business as usual” at the Fayetteville studio.
“Pinewood has grown in recent years into a global operation which sits at the forefront of the U.K.’s creative industries. We believe that we have found the right partner for the business, and one that shares our long-term vision for the future of the group,” Pinewood CEO Ivan Dunleavy said on July 28. “Pinewood’s continuing commitment to the U.K.’s creative industries remains as strong as ever. Staff and customers can be assured that in this new strategic partnership our priority will be to not only maintain, but build on the world-class provision of services.”
It was earlier this year that Pinewood announced that N.M. Rothschild and Sons would assist with a strategic review of Pinewood’s capital base and structure.
The background to the strategic review was that the company’s shareholder register has been tightly held for a number of years, which has stifled liquidity in the company’s shares and prevented the company from obtaining a main market listing. The board also recognized the requirement for a future funding strategy to be in place in order to build on Pinewood’s successes to date, according to Pinewood Group in the July 28 news release.
Two companies currently own 65 percent of Pinewood stock. Those include Goodweather Investment Ltd at 39 percent and Warren James Holdings Ltd at 26 percent.
