TORONTO - Shares of Toronto-based Entertainment One Ltd. soared more than 30 per cent after it struck a deal to be acquired by American toy giant Hasbro Inc. for US$4-billion.
EOne shares gained about 1.42 British pounds or 31.94 per cent to 5.85 pounds on the London Stock Exchange.
The boost came after Pawtucket, R.I.-based Hasbro announced Thursday it would pay roughly 3.3-billion pounds or 5.60 pounds per common share to acquire the company that brought kids the popular cartoon Peppa Pig.
The share's closing price Friday already surpassed the acquisition offer, and traded as high as 6.16 pounds on Friday.
EOne produces several animated kids' shows, including Peppa Pig, and Hasbro says the deal would help it turn more of its toy brands into shows or movies, as well as significantly expand its Canadian presence.
EOne's Canadian TV and film operations would continue as a distinct Canadian-controlled business within the combined entity, and some of eOne's executives have agreed to join Hasbro.