One of the biggest entertainment acquisitions announced last year has been canceled.
Saban Capital Acquisition Corp. – a company formed by Beverly Hills billionaire Haim Saban – announced Feb. 28 it has terminated the $622 million purchase of Woodland Hills-headquartered Panavision Inc. and Toronto-based Sim Video International Inc.
The decision to end the deal was “due to market conditions, delays resulting from the partial U.S. government shutdown, and the March 31, 2019 termination date of (Saban Capital Acquisition Corp.),” according to a Securities and Exchange Commission filing by Saban Capital Chief Executive Adam Chesnoff.
What has changed in the market is not clear. Messages left with Saban and Panavision were not immediately returned.
Saban Capital Acquisition Corp. is a special purpose acquisition company, which sell shares on the public market to buy at least one company. Such a company usually sets a time limit with shareholders and SEC regulators to successfully close a deal.
Under the termination agreement, the $55 million raised in stock buys will be returned to shareholders within 10 business days after March 31.
The termination agreement also nullifies a $250 million and $100 million revolving credit facilities Saban Capital agreed to with several banks.
The original purchase agreement was announced in September. A press release accompanying the September announcement declared that venerable film equipment maker Panavision and post-production facility Sim would form a “premier global provider of end-to-end production and post-production services in the entertainment industry.”