Indie producer DHX Media says it will spend $5 million to buy back 7.14 million shares at $0.70 each as part of a stock repurchase program.

“We are pleased with the results of the substantial issuer bid as we believe it represents tremendous value for our remaining shareholders,” Michael Donovan, chairman and CEO of DHX Media, said in a statement.

The share buyback was completed via a Dutch auction where shareholders specified the price they might sell stock at within a range of $0.60 to $0.70 per-share, and DHX Media then chose which shares it would buy back.

An issuer bid reduces the number of shares in circulation and boosts the proportionate profits available to remaining shareholders.

DHX Media, which is focused on kids and family programming production, said the buyback was oversubscribed, with around 8.86 million shares tendered, or around 14.7% of common shares.

The Halifax-based indie producer in December 2011 posted a lower first-quarter profit, despite sharply higher revenues from producer fees, service production and its Wildbrain Entertainment division.

DHX Media saw earnings for the three months to Sept. 30 fall to $318,000, against a profit of $429,000 in the same period of 2010.