Pinewood Studios Owner Considers Sale

LONDON—The owner of the British film studio where the Millennium Falcon soared back into action sent its shares into hyperdrive Wednesday, after it said it has launched a strategic review that could lead to a sale of the business.

Pinewood Group PLC, the home of the new "Star Wars" films as well as the James Bond series, is​ Europe's largest stage and studio space provider​.

The company, thriving of late thanks to large-scale productions like the blockbuster " Star Wars: The Force Awakens" and the latest Bond adventure, "Spectre," in December reported strong profits for the fiscal first half ended Sept. 30 and raised its dividend.

The company's shares, listed on London's small-capitalization AIM market, jumped 19% to 535 pence in Wednesday morning trading after it said it​has appointed investment bank Rothschild to assist with a review of its capital base and structure.

"We believe Pinewood has the potential to build on the strong performance of the last few years to grow further," said Chief Executive Ivan Dunleavy. "The board is now looking to identify the best ways to create the appropriate capital structure to allow the company to realize its goals in the best interests of shareholders."​​

Pinewood's storied history dates back more than 80 years. Films shot at its facilities range from "Oliver Twist," "The Omen" and 1978's "Superman" to more recent megaproductions including "Avengers: Age of Ultron" and "Mission: Impossible - Rogue Nation."

Pinewood acquired its nearby rival Shepperton Studios, where "Blade Runner" and "Top Gun" were shot, in 2001.

Mr. Dunleavy said​in an interview that​the company hasn't been approached yet and that there is no timetable for the review. "We will be updating the market on the process and...we want to get on with it so that it's a speedy process," he said.

Pinewood previously planned to move to the main market of the London Stock Exchange but said its "tightly held" shareholder base has stifled liquidity in its shares and prevented the company from achieving its aim of obtaining a main-market listing.

More than 78% of shares are held by three shareholders​: Goodweather Investment Management Ltd., with about 39%; Warren James Holdings Ltd., with about ​26%; and Aviva PLC, with about 13%.

Pinewood also said its current expectations for the year ending March 31 are higher than at the time of the interim results last December.

Write to Jana Simmons at [e-mail]

(END) Dow Jones Newswires

February 10, 2016 08:05 ET (13:05 GMT)

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