No bid for Bob the Builder

13 April 2012

BOB the Builder group Hit Entertainment moved to quash speculation it had received a takeover approach from a Swiss investment firm.

The children's entertainment group, which also owns the rights to Thomas the Tank Engine and penguin character Pingu, confirmed it had met with Mediawin & Partners but had not discussed the possibility of a bid.

It followed a newspaper report claiming the group was in the early stage of talks that could lead to a formal offer.

According to The Sunday Times, any bid for the company is likely to value it at around £420m.

London-based Hit said in a statement today: 'The board confirms that it regularly meets existing and prospective investors, and has met with Mediawin Partners at their request on this basis.

'At no stage has a bid for the company been discussed.'

Hit's chief executive Rob Lawes quit last month as the company announced a 43% fall in annual profits to £14.6m.

The firm said at the time that it required a leader with different skills to move it forward following a new deal involving a pre-school channel on digital television in the United States.

The group is investing $32m (£17.2m) in the channel, in a move that will give greater US television coverage to Bob the Builder and other characters.

Mr Lawes has been temporarily replaced by founder and chairman Peter Orton, who was previously chief executive.

Mr Orton said at last month's results announcement that the US deal created marked a major strategic change that would prevent a repeat of recent problems that saw Bob the Builder sales fall significantly.

Mediawin was set up to invest in a range of media companies. It was formed by Martial Chaillet, who previously held a senior position with investment management firm Capital Group, and analyst and media consultant Thomas Deitz.

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