AusLeisure

The takeover of Village Roadshow by private equity group BGH Capital is set to be confirmed by shareholders following the Village Roadshow board having recommended the sale at $3 a share.

The deal will see control of the firm, founded in 1954 with the opening of a drive-in cinema, move from the Kirby family to the Melbourne-based equity fund.

The BGH shareholding structure for the vehicle that will own the cinema and theme park company includes separate shareholdings for John and Robert Kirby with Robert Kirby and former Chief Executive Graham Burke as co-Chairmen of the business.

Robert Kirby’s son Clark Kirby will remain as Chief Executive.

This structure means that BGH Capital co-founders Ben Gray, Robin Bishop and Simon Harle will benefit from the valuable corporate memory and networks of the Kirby family and Burke.

BGH Capital first looked at acquiring Village Roadshow in January, reportedly offering $4 a share, valuing the business at more than $770 million. The offer came at a time when the company was recording positive growth and a stated intention to reduce its debt.

However, the impact of COVID-19 has hit the company with its theme parks closed for several months and cinema operations only now starting to welcome back moviegoers.

The company has also had to draw down $70 million on its debt facility in order to get through the period of closures.

Throughout the takeover period animal rights group World Animal Protection has campaigned against captive dolphin breeding at Village Roadshow’s Sea World property on the Gold Coast.

With BGH Capital’s takeover confirmed, World Animal Protection Head of Campaigns, Ben Pearson stated “World Animal Protection are calling on BGH Capital to implement a captive breeding ban at Sea World so we can make this the last generation of dolphins bred to suffer in captivity.

“Breeding more dolphins that can live up to 50 years is unjustifiable given the cruelty involved and the declining social acceptability of dolphin captivity.

“The future profitability of Sea World lies in rides and non-animal attractions. They don’t need to breed more dolphins into a lifetime of lockdown.

“Village Roadshow have turned down genuine discussion with us on this issue, so we look forward to seeing if BGH Capital will be more open to hearing our solutions.”

Last month World Animal Protection had a giant billboard erected outside BGH Capital’s offices in Melbourne. However, the billboard was pulled down after only four days.

World Animal Protection along with other animal welfare organisations, including World Cetacean Alliance and Action for Dolphins, have publicly campaigned for a ban on captive dolphin breeding in Australia for years.

Sea World is the only venue in Australia where captive breeding still takes place.

Images: The DC  Rivals HyperCoaster at Warner Bros. Movie World (top) and World Animal Protection's billboard on Melbourne’s Lonsdale Street prior to its removal last month (below).

Related Articles

9th December 2020 - Sea World and QPWS staff combine to free dolphin after days trapped in North Stradbroke Island rock pool

8th December 2020 - Village Roadshow reveals new imagery for Sea World’s New Atlantis Precinct

27th November 2020 - Village Roadshow leads Queensland tourism operators in advertising summer positions

20th November 2020 - World Animal Protection billboard removed from Melbourne’s Lonsdale Street

13th November 2020 - World Animal Protection unveils new campaign calling for end to captive dolphin breeding at Gold Coast’s Sea World

13th October 2020 - Takeover offer for Village Roadshow ‘fair and reasonable’

29th August 2020 - Village Roadshow commits to theme ride regeneration despite impact of Coronavirus losses

17th August 2020 - Village Roadshow moves toward acquisition by private equity firm

17th July 2020 - Village Roadshow reopens Warner Bros. Movie World and Wet’n’Wild Gold Coast

17th June 2020 - Village Roadshow announces reopening schedule for Gold Coast theme parks

5th June 2020 - Ardent and Village Roadshow look for early reopening of Gold Coast theme parks

15th May 2020 - Fair Work Commission rules against Village Roadshow Theme Parks worker who opposed being forced to take leave

12th May 2020 - Village Roadshow Chief Executive calls for JobKeeper extension as Queensland Government’s Coronavirus easing roadmap suggests reopening of theme parks, entertainment venues and stadiums in June

6th April 2020 - Village Roadshow Theme Parks backs staff during lockdown

24th January 2020 - Private equity group BGH Capital submits rival bid for Village Roadshow

18th January 2020 - South east Queensland deluge closes Dreamworld, Movie World and Wet’n'Wild Gold Coast

23rd December 2019 - Sea World hit with new protests over dolphin care

20th December 2019 - Private equity firm makes $750 million offer for Village Roadshow

17th December 2019 - Sea World Helicopters opens new multi-million-dollar terminal

15th October 2019 - Village Roadshow reveals profit turnaround in last financial year

11th September 2019 - Village Roadshow Theme Parks reveal schedule for opening of new Sea World attractions

22nd July 2019 - Ongoing board changes at Village Roadshow see appointment of Clark Kirby as Chief Executive

20th September 2018 - Movie World launches new climb attraction on Southern Hemisphere’s tallest HyperCoaster

---

Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?

As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.