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- Media producer and theme park operator Village Roadshow (VRL) has received its second buyout proposal
- Private Australian equity firm BGH Capital has offered around $780 million for the company at $4.00 per share
- Last December, fellow Australian private equity firm Pacific Equity Partners offered $3.90 per share in a buyout proposal
- The company says shareholders don’t need to take action for either proposal at this stage
- It’s still uncertain as to whether either will lead to a transaction
- Village Roadshow’s share price is up 3.9 per cent to trade at $4.00 each
Media producer and theme park operator Village Roadshow (VRL) has received a proposed buyout from private Australian equity firm BGH Capital.
The purchase price is roughly $780 million, with the firm offering $4.00 for every share in the company.
This marks a 25 per cent increase on VRL’s closing price from December 18, last year – the last trading day before entering a trading halt as fellow Australian private equity firm Pacific Equity Partners (PEP) made a proposal to buy to company.
BGH’s offer tops PEP’s, which proposed an acquisition price of $3.90 per share.
When PEP first made its offer last December, Village Roadshow was trading for $3.20 per share.
As details of the proposed buy from BGH were made available on the Australian market today, Village Roadshow’s share price is up 3.9 per cent to trade at $4.00 each.
For the deal to go ahead there is a number of conditions which still need to be met, according to Village Roadshow. Among these is completion of due diligence, arrangement of financing, and government and board approval.
The company detailed to shareholders they “do not need to take any action in relation to either the PEP Proposal or the BGH Proposal at this stage.”
As it stands, there is “no certainty either proposal will result in a transaction,” Village Roadshow wrote.
