Peace Arch in Talks to Acquire ContentFilm

TORONTO, December 20: Peace
Arch Entertainment has entered into negotiations to acquire London-based
ContentFilm, the parent company of Fireworks International.

The proposed bid values ContentFilm at 20 pence per share. The possible deal is worth 19,500,000 Peace Arch shares
plus C$35 million in cash. The total deal value is £34.8 million for the shares
already in issue and £45.8 million on a fully diluted basis.

The company’s assets include
the U.S. home-entertainment outfit Allumination FilmWorks; the film sales and
financing firm ContentFilm International; and the distributor Fireworks
International, which yesterday announced a deal to take on the catalogue of
Canadian pubcaster CBC.

“Peace Arch’s proposed
acquisition of ContentFilm would create an asset-rich, vertically integrated
film, television and home entertainment company with significant strengths in
Canada, the United States and abroad,” said Jeff Sagansky, the CEO of Peace
Arch. “A successful conclusion to the acquisition would substantially expand
Peace Arch’s library of proprietary film and television titles, create one of
the strongest independent feature film sales companies in the business, it will
make Peace Arch one of the top international suppliers of high quality
television programming and result in one of the largest independent DVD
distributors in North America.”

—By Mansha Daswani