Image Entertainment trades higher in after-hours on amended merger terms
Shares of producer and distributor of home entertainment programming Image Entertainment, Inc. (Nasdaq: DISK) rose 5.52% or $0.23, to $4.40 in after-hours trading Wednesday after reporting that it has amended its merger agreement with BTP Acquisition Company, LLC, an investor group led by David Bergstein.
Under the original agreement BTP decided to change the acquisition structure to allow Image Entertainment to remain a public company listed for trading on Nasdaq.
According to Image Entertainment, under the terms of the amended merger agreement, Image Entertainment stockholders will receive the same aggregate cash consideration as under the original merger agreement, but also will retain between 5% and 9% of their common shares in the post-transaction company.
In connection with the amended transaction, Image also agreed to sell to BTP shares of Image Entertainment common stock and shares of a newly authorized class of Image Entertainment convertible preferred stock.
“We are very pleased to announce an amended transaction that is in the best interest of our stockholders, presenting them with excellent value for their shares and the opportunity to participate in any future growth of Image,” said Martin W. Greenwald, Chairman and CEO of Image Entertainment.
