New takeover offer for Movie World owner
PRIVATE equity firm BGH Capital has entered into exclusive due diligence with Gold Coast theme park operator Village Roadshow to buy the company.
BGH previously launched a takeover offer for the listed Village Roadshow in January this year, offering $4 cash per share and valuing the Movie World owner at $780 million.
A lot has changed since that offer with the shutdown of the company's theme parks and cinemas leading to a slump in revenue and the share price, which hit a low of 77c before bouncing back to above $2.
Village said this morning it has entered into a transaction process deed where BGH will be given four weeks to undertake due diligence with a view to reaching a deal to acquire all the Village shares in a scheme of arrangement worth $2.40 per share.
That is $1.60 less per share than the previous offer and reflects the change in the share price owing to the COVID-19 shutdown.
The proposal is subject to a range of conditions including "no further material deterioration in the operating environment or outlook for VRL".
MORE TO COME
Originally published as BREAKING: New takeover offer for Movie World owner