New development in Shed Media MBO talks

Waterloo Road producer Shed Media has reportedly ended management buyout (MBO) talks with two private equity groups, but will continue negotiations with another interested party.

The company, which includes the Wall To Wall, Twenty Twenty and Ricochet businesses, began MBO talks in August last year.

In December, Bowmark Capital and Darwin Private Equity emerged as having made an official approach to back the management-led acquisition of Shed Media.

However, it has been reported today that talks with both private equity groups have now been terminated.

Despite the setback, the company's independent directors said that they have "received a proposal from a potential offeror, working with certain members of Shed management, which may or may not lead to an offer being made for the company".

The takeover bid marks the second time that members of Shed's management team have tried to take control of the company.

In 2008, co-founder Eileen Gallagher led a group of executive directors in a failed bid for the firm. Gallagher subsequently stepped down from the company's board, but retained her position as executive director of subsidiary division Shed Productions.

Last year, Shed Media reported an adjusted pre-tax profit of £12m, with revenue up by 13% year-on-year to £92.6m.