Destinations

Virgin bidder in takeover talks with Village Roadshow

Huntley Mitchell

Huntley Mitchell

An Aussie private equity firm that has been shortlisted as a suitor for Virgin Australia is also eyeing a takeover of another prominent travel industry player.

Village Roadshow, which operates well-known theme parks Warner Bros. Movie World, Wet’n’Wild and Sea World, along with a host of cinemas across the country, revealed to shareholders yesterday that it is in negotiations with BGH Capital over a potential privatisation takeover.

In a statement posted on the ASX, Village Roadshow said it had received a revised, non-binding proposal from BGH to acquire all of the company’s shares by way of a scheme of arrangement at a price of up to $2.40 per share.

The offer consists of a base price of $2.20 per share, plus an additional 12 cents per share in the event that Movie World and Sea World have re-opened to the public three business days prior to the day Village Roadshow shareholders meet and vote on the transaction.

The additional eight cents per share is in the event that a majority of the company’s cinema locations have re-opened to the public three business days prior to the day shareholders decide on the deal.

Village Roadshow noted that the additional offer price is also subject to certain other conditions as set out in the transaction process deed.

BGH has proposed two transaction structures as part of its revised proposal, which is subject to various conditions.

These include the completion of confirmatory due diligence, the arranging of debt financing, the negotiation of transaction documentation, and approval from the Foreign Investment Review Board.

The revised offer is a lot lower than the initial one BGH made in January, which was priced at $4 per share.

BGH – which is also one of the four parties in the running for the collapsed Virgin Australia – has been granted exclusive access to Village Roadshow’s books for an initial four-week period to facilitate a binding offer.

In a separate announcement yesterday, Village Roadshow said it has implemented a number of measures to conserve capital and maintain operating liquidity, “whilst ensuring that the business is in a strong position to re-open venues when appropriate”.

As at 30 April 2020, Village Roadshow had a net debt position of approximately $284 million, comprising $342 million of gross debt and $58 million of readily available cash. The company expects a net debt position of approximately $315 million at 30 June 2020.


Featured image: Facebook/Warner Bros. Movie World

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Cruise

Viking ups its marketing tools for Aussie agents

Looking to impress your friends and colleagues with some very specific cruise ship fun facts? You’ve come to the right place.

Share

CommentComments

Destinations

Giant 2,000-year-old cat mural found in Peru

A huge drawing of a cat relaxing has been uncovered in Peru’s Nazca Desert, and now we know where we’re headed the second international borders open.

Share

CommentComments

Destinations

Queensland to reopen borders to NSW (except for Sydney)

Sydneysiders were seen kicking cans down the street this morning while shaking their fists in Queensland’s general direction following the announcement.

Share

CommentComments

Travel Agents

Helloworld’s retail network “largely intact”, as company lays out border and travel ‘bubble’ forecasts

by Huntley Mitchell

Travel Weekly has poured over Helloworld’s quarterly update to bring you this package of highlights.

Share

CommentComments

Technology

Emirates unveils new NDC-powered gateway for travel agents

Have you always found Emirates’ online trade platform to be a little clunky and lacking in capabilities? Relieve your tech-induced pain here.

Share

CommentComments

Road & Rail

Velocity Frequent Flyer partners with Hertz-owned car share company

Are you seeking other ways to boost your Velocity points than by buying a case of Virgin Wines or signing up for another credit card? Look no further.

Share

CommentComments

Hotels

NSW introduces strict new laws to regulate short-term rental market

The new laws include a ‘three strikes and you’re out’ approach for irresponsible hosts. However, that’s not to say they will be forced to wield baseball bats or chew tobacco.

Share

CommentComments

Cruise

Royal Caribbean updates 2021/22 Aussie sailings

The cruise line has also launched a new agent-focused campaign to help you get clients booking early.

Share

CommentComments

Wholesalers

Intrepid slashes prices for NT trips

Show your clients that they don’t need to leave the country to experience epic scenery with this banger deal from Intrepid.

Share

CommentComments

Aviation

Qatar Airways entangled in online recruitment scam

Adding to its already horrendous news week, the airline has become embroiled in an online recruitment scam.

Share

CommentComments

Wholesalers

“It’s good business to have”: Contiki boss talks pivoting to domestic and why agents should target youth travellers

Adam Armstrong began his stint at Contiki at an interesting time, to say the least. Here’s his game plan for the brand and his advice for agents.

Share

CommentComments

Travel Agents

Flight Centre boss demands proof of Queensland’s border closure advice

Skroo’s patience with the Queensland government is wearing thin, after making yet another request to see the medical advice that influenced the state’s border closure.

Share

CommentComments