 Noddy is a popular kids TV character the world over |
The owners of Noddy and the Mr Men characters, Chorion, have agreed to a �111m management buyout. The company has accepted an offer of 425 pence per share from management backed by private equity firm 3i.
Chorion said it had decided to be bought out following uncertainty over future consumer trends.
The company also owns the rights to other well-known characters including the Famous Five, Hercule Poirot and Inspector Maigret.
Chorion's shares closed up 10.5 pence, or 2.5%, at 424p.
Higher risks
Chorion's independent directors said there were a number of factors behind recommending the takeover offer.
These included "the challenging operating environment" Chorion was experiencing as consumer buying habits change, and uncertainty over the switch from DVD and video-related products to home entertainment platforms.
Another factor was the production and worldwide roll-out of a new television series of the Mr Men.
"We are entering a challenging period in our development, where substantial investment will be needed, the risks will be higher and returns take longer to realise," said chairman Waheed Ali.
"This offer will give our shareholders the opportunity to realise an excellent return on their investment."
Planet Acquisitions, the company set up for the bid, said 3i would provide �79.8m for the deal, Chorion management would supply �7.4m, while the rest would be funded by debt.
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This offer will give our shareholders the opportunity to realise an excellent return on their investment
