DHX in share offer u-turn

Canada’s DHX Media has performed an about-face and decided not to go ahead with a recently-announced public offering.

The kids TV group only this week announced it was preparing a new share offer, but following a management “assessment” a decision has been made to end the strategy.

“The termination results from an assessment by DHX’s management that current market conditions are not conducive for an offering on terms that would be in the best interests of DHX’s shareholders,” the company said in a statement.

DHX was planning to use the proceeds of the share issue to fund acquisitions of companies to sit alongside an 11,000 content library that includes Teletubbies, (pictured), Degrassi and Yo Gabba Gabba!, channels operation DHX Television and licensing business CPLG.

DHX was formed in 2006 as a merger of Decode Entertainment and Halifax Film Company, with Studio B Productions, WildBrain, Cookie Jar Entertainment, Ragdoll Productions, Epitome Studios and Nerd Corps Entertainment all joining the business in subsequent years.

The company listed on the NASDAQ stock exchange last month, but was already on the Toronto Stock Exchange.

Though DHX will not go ahead with its share offer, the media sector is likely to provide one of the largest IPOs this year with US Hispanic broadcast giant Univision gearing up to go public.