The FTSE 250 owner of the Peppa Pig brand accepted the cash offer of 560p per share, a 26.3% premium on its Thursday close price of 443p.
Brian Goldner, Hasbro’s chairman and chief executive, said the purchase would add “beloved story-led global family brands” to its portfolio, adding that the company would also seek to leverage eOne’s entertainment capabilities to screens around the world.
Meanwhile, Darren Throop, eOne’s CEO, said there was a “strong cultural fit” between the two companies and that its team would be bolstered by Hasbro’s “extensive portfolio” of brands, which include My Little Pony and G.i. Joe.
eOne is the latest in a line of London-listed UK firms that have been taken out by overseas companies as the ongoing Brexit crisis depreciates the value of sterling, leaving UK companies looking a lot cheaper for foreign buyers.
“Low probability” of competing bid, says RBC
In a note, analysts at Canadian bank RBC downgraded their rating on eOne to ‘sector perform’ from ‘outperform’ while also hiking their target price to 560p from 470p, the same level as Hasbro’s bid.
The bank also said that while it wasn’t ruling out a higher bid, it was a “low probability” and the £3.3bn price tag was at the “upper end” of the transaction range for content companies such as eOne.
In pre-market New york trading, Hasbro shares were 4.9% lower at US$108.79.
-- Adds Hasbro share price, updates ETO price --