Pinewood Studios Owner Considers Sale
February 10 2016 - 8:20AM
Dow Jones News
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 ithas 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 saidin an interview thatthe 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 Jana.Simmons@wsj.com
(END) Dow Jones Newswires
February 10, 2016 08:05 ET (13:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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