Timeweave, the investment vehicle that bought over £3m-worth of loan notes in DCD Media, is converting part of the debt into a 29.99% stake in the production company.
The move, which will be made official on 18 April, has been expected since Timeweave first bought the loan notes at the start of February.
Just under £600k will be converted into the 29.99% equity stake – the largest amount possible allowed under trading laws without making an outright bid for a listed company.
This means Timeweave retains £2.4m in loan notes. DCD Media is currently trading at 4.8p per share, valuing the company at around £6.8m.
The vehicle already owns a 50% stake in Turf TV, which holds exclusive broadcast rights for horse racing from 31 British racecourses including Aintree, Ascot and Newmarket.
Back in February, the chief executive David Craven said it had been “following DCD Media for some time” before spotting the opportunity to make its move.
He added that the investment was “consistent with Timeweave’s strategy of growth and delivering shareholder returns through investment.”
At the time sources at DCD said the investment had “come out of the blue”, but noted that Timeweave seemed to be “friendly investors”.
It is thought they are broadly supportive of the indie’s plans to restructure and rebrand the company, which is expected to see significant changes to the regional hubs and the disappearance of the DCD brand.