Shares in an Aim-listed TV production firm have plummeted after it announced its latest acquisition and a new placing.
Zinc Media, the parent of several production companies, announced this morning that it had proposed to buy Tern Television Productions for £5.45m.
Last year Tern, which makes factual TV such as National Geographic's 'Vinnie Jones: Russia’s Toughest' and Channel 4's 'Rivers with Jeremy Paxman', brought in revenue of £5.3m and turned a profit of £300,000.
Shares in Zinc dropped 17.4 per cent in early trading following the announcement, in which the company said it would partly finance the acquisition by placing new shares at a discounted rate of 0.9p to raise £3.5m.
Zinc chief operating and financial officer David Galan told City A.M. last month that the company saw itself as a "consolidator" in the TV production industry and was actively seeking new additions to its five-strong portfolio.
Today, Zinc's chairman Peter Bertram said: "By augmenting our business through acquisitions such as that of Tern, the enlarged group will have greater abilities to reach new markets, to establish strategic relationships with broadcasters and international commissioners and to produce innovative content."