Image Shareholders Approve Merger23 Oct, 2007 By: Erik Gruenwedel
Image Entertainment shareholders voted to approve the acquisition of the DVD distributor by BTP Acquisition Company LLC following a special meeting Oct. 22 in Los Angeles.
Image shareholders will receive $4.68 per share in cash without interest, which represents 94% of outstanding stock in the pre-merger company. The stockholders retain a 6% interest in the post-merger (new) company.
The deal represented an amended version of the original bid that offered Image shareholders just 5% in the new company.
Film financier and producer David Bergstein led the investor group that acquired Chatsworth, Calif.-based Image in March for $95 million in cash. The deal included assumption of a $9 million replication advance from Sonopress LLC and the repayment of about $24 million of debt.
Total value of the deal amounted to $132 million.
“We believe today's stockholder approval clearly demonstrates the recognition and the benefits of this merger,” said Martin Greenwald, CEO, president and chairman of Image.
Image stock Oct. 23 was up 2 cents in midday trading to $4.45 per share.
The merger is slated to close Nov. 6.