BBTV Holdings (TSX: BBTV) this morning announced that it has obtained a receipt for its final prospectus for its go public transaction. Pegged at $172.4 million, the go public transaction will enable the company to purchase the entire stake in that of BroadbandTV, a media and tech company founded in 2005 focused on the distribution, protection, and monetization of video content.
Approximately $158.8 million of the proceeds from the IPO will go towards purchasing the remaining portion of BroadbandTV, whom currently is 57.5% owned by RTL Group, while also taking on debt of $46.6 million owed by RTL. The remaining net proceeds will then be earmarked for use in operations.
Upon closing, the company will see CEO and founder of BroadbandTV, Shahrzad Rafati, own 100% of the multiple voting shares outstanding, as well as 3.97% of the subordinate voting shares outstanding. The position will enable Rafati to have a total voting power of 82.7% of BBTV Holdings, while investors from the IPO round will collectively own 12.38%. The remainder of the firm will be held by former minority shareholders of BroadbandTV.
The initial public offering of BBTV is being conducted at a price per share of $16.00 through the issuance of 10,775,000 subordinate voting shares. An over-allotment option will also be available for a period of 30 days following the close of the transaction, which if exercised would result in an additional 1,077,500 subordinate voting shares being issued and an additional $17.2 million in gross proceeds.
The IPO is expected to close October 28, 2020, which will see the company commence trading on the Toronto Stock Exchange under the symbol “BBTV”.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
