Toy maker Funtastic gets takeover bid

SmartCompany /

Toy maker Funtastic – which owns the Australian licences to Bob the Builder, Winnie the Pooh and Thomas the Tank Engine – has received a $133 million takeover bid from a consortium led by private equity firm Archer Capital.

The consortium also includes Craig Mathieson, son of pub baron Bruce Mathieson, and Nir Pizmony, who sold his JNH toy-making business to Funtastic in 2002.

The consortium has struck a deal to buy ABC Learning Centres’ stake in Funtastic. As a result, the consortium already controls 18.8% of Funtastic.

The bid is subject to a number of conditions, including the unanimous approval of the Funastic board and the consortium getting it funding in order. “Funtastic is not in a position to give any assurance that the proposal’s preconditions will be satisfied, that its board’s evaluation will lead to a recommended proposal or that the proposal will proceed,” Funtastic said in a statement.

Funtastic shares slumped from $1.30 in November 2007 to 36.5c in March after it revealed in late 2007 that it was struggling to clear a build-up of inventory. Today’s offer at 80c a share represents a big premium for shareholders, who have seen the stock trade at around 50c in recent weeks.


SmartCompany is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.

We Recommend