Join our daily newsletter At The Bell to receive exclusive market insights
- Theme park company Village Roadshow (VRL) has agreed to a takeover deal with BGH Capital, in an agreement valuing the company at $758 million
- After months of negotiations, BGH will offer Village shareholders up to $2.45
- This price relies on whether Village’s theme parks and cinemas reopen as well as the Queensland borders
- The deal will only go ahead if shareholders approve and a meeting is set for November
- The Independent Committee of Village Board of Directors have recommended that shareholders approve it as it’s in their best interest
- On market close for the weekend, Village remains in the grey and is trading for $2.10 per share
Theme park company Village Roadshow (VRL) has agreed to a takeover deal with BGH Capital, in an agreement valuing the company at $758 million.
Following months of negotiations, BGH will purchase a controlling interesting in Movie World’s parent company.
BGH is offering shareholders up to $2.45 per share, which will rely on wether Village’s theme parks and cinemas reopen as well as the Queensland borders to visitors from New South Wales and Victoria.
From tomorrow, New South Wales, the Australian Capital Territory or Victoria will not be able to enter Queensland. This could potentially put a roadblock in the deal.
However, the deal still needs shareholder approval and Village will have a scheme meeting in November. If the deal is approved, the BGH transaction will be completed shortly after.
The Independent Committee of Village Board of Directors (IBC) have unanimously recommended the BGH agreement and believe the deal is in the best interest for shareholders.
“The BGH Transaction provides the opportunity for all VRL shareholders to realise an attractive cash price for all of their VRL shares, in a very uncertain operating environment. VRL shareholders will also have the opportunity to elect to retain an equity interest in an unlisted VRL entity that is controlled by BGH,” IBC Chairman Peter Tonagh said.
Yesterday, the company secured a $70 million loan facility to continue operations during COVID-19.
On market close before the weekend, Village remains in the grey and is trading for $2.10 per share.
