Village Roadshow moves toward acquisition by private equity firm

August 17, 2020

Attractions / Finance / Tourism / Waterparks /

In a deal valuing the company at $758 million, Village Roadshow has agreed to a takeover deal by private equity firm BGH Capital.

With BGH Capital and Pacific Equity Partners having each moved to acquire the cinema, entertainment and theme park business over the Christmas 2019 and New Year period, after months of negotiations Village shareholders are being offered up to $2.45 for their shares.

This price relies on the reopening of Queensland's borders (while currently operating the group's theme parks are only open to Queenslanders) and when Village Roadshow can reopen its cinemas.

The deal will only go ahead if shareholders approve the acquisition at a meeting set for 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.

IBC Chairman Peter Tonagh advised "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."

Village Roadshow has secured a $70 million loan facility from the Queensland Government to continue operations during COVID-19.

Image: Wet'n'Wild Gold Coast with the Surfrider in the foreground. Wet'n'Wild Gold Coast regularly features among the world's top performing waterparks.

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19th May 2020 - Queensland Government provides emergency funding for theme parks and wildlife attractions

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

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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

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

25th May 2019 - Village Roadshow reveals $50 million investment into Gold Coast theme parks

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