Warner Brothers To Buy UK TV Firm Shed Media For GBP99.9 Million

Television production company Shed Media PLC (SHDP.LN) Thursday said it has agreed a recommended takeover by a Warner Brothers company, WB Bidco, and the existing management team, valuing the company at around GBP99.9 million.

Shed, which makes television programs such as Waterloo Road, Supernanny and Who Do You Think You Are?, said the takeover would give it a global platform to support and deliver its growth plans while Warner, which is part of Time Warner Inc. (TWX), said its acquisition of Shed will give its television group a "solid foundation," as it extends its local television production business to other major regions.

Under the terms of the proposals, shareholders will receive 115 pence in cash for each Shed share--a 38% premium to the closing price of 83.5 pence Wednesday and a 73% premium to the closing price July 29, 2009, the last day before the offer period started.

WB Bidco said it has received irrevocable undertakings and letters of intent from Shed shareholders holding around 73% of the shares.

At 0819 GMT, shares in Shed were up 29.5 pence, or 35%, at 113 pence. The wider AIM index was up 0.7%.

-By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [e-mail]