Latest News

Back to Latest News back

 

Private equity firm makes $750 million offer for Village Roadshow

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

Village Roadshow Limited has received a takeover offer - worth around $761 million (US$523 million) from private equity firm Pacific Equity Partners

Following a series of challenges for the family-run cinema and theme park business during 2019, the $3.90-per-ordinary-share offer has, as of yesterday afternoon, taken the stock to its highest value since May.

A call option over 19% of the issued Village shares has been entered into between an associate of the private equity firm and Village Roadshow Corporation, the biggest shareholder in the company. The Kirby family and outgoing Chief Executive Graham Burke together hold about a 40% stake in the business.

Pacific Equity's conditional and non-binding offer has been presented as either all-cash or a combination of cash and scrip. The proposal is subject to due diligence, financing, approval from the Foreign Investment Review Board and the recommendation of the Village Roadshow board.

Village Roadshow advised shareholders in a statement to the ASX on Thursday afternoon that there was "no certainty" the offer would result in a deal.

The statement advised "the board is currently considering the proposal, including obtaining advice from its financial and legal advisers.

"The board believes that shareholders' interests are best served by conducting exploratory discussions with (Pacific Equity) to determine whether a proposal that is in the best interests of Village shareholders can be put forward."

Village Roadshow posted strong results for the 2019 financial year following what Melbourne newspaper The Age called “a bitter feud between members of the founding family over how the business had been run after a three-year share price slide wiped $500 million off the company's value”.

Pacific Equity previously bought cinema chain Hoyts from a consortium of owners, including James Packer, for $440 million in 2007. The firm invested about $100 million into the company before selling the cinema chain to China’s Dalian Wanda in 2014, reportedly for about $800 million.

Village Roadshow declined to comment but The Age reported “sources close to Pacific” as saying “Village's diversified assets across film distribution, marketing, theme parks and cinemas were attractive, with a 65-year history in the sector and strong similarities to Hoyts”.

Village Roadshow Chairman Robert Kirby and Burke have made no other comment to media.

Image: Warner Bros. Movie World on the Gold Coast.

Article amended 10pm, 20th December 2019. Earlier headline was 'Private equity firm makes $1 billion offer for Village Roadshow'.

Related Articles

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

16th December 2019 - Sea World has ‘nothing to hide’ in its dolphin care

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

4th October 2019 - Owners sell TEG to technology investors

13th September 2019 - Village Roadshow Theme Parks announces naming rights partnership with Gold Coast Marathon

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

27th May 2019 - Village Roadshow Theme Parks to operate China’s Lionsgate Entertainment World

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

22nd May 2019 - Clark Kirby explains his drive to ‘challenge everything’ within Village Roadshow Theme Parks

20th May 2019 - Village Roadshow’s Gold Coast theme parks boosted by recent visitor numbers

22nd February 2019 - Village Roadshow report rising earnings and record-breaking January period for theme parks while writing off Dreamworld as competition

24th December 2018 - Mindbody accepts US$1.9 billion private equity firm buyout

18th September 2016 - Quadrant Private Equity adds Jetts to fitness sector acquisitions in $100 million deal

9th February 2015 - Hoyts Cinemas sold to Chinese-backed ID Leisure Ventures

25th July 2013 - Billabong pays off debts after reaching deal with US private equity firm


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

RHINOPLAY

Rhinoplay offers playground equipment in Australia that is safe, durable, and most importantly fun! We specialise in creating unique indoor playgrounds for play centres and outdoor playgrounds for…

read more

Parks / Play / Surfaces

 
 

AUSTRALIAN WATERSLIDES AND LEISURE

A leading designer and manufacturer of innovative waterslides and attractions, Australian Waterslides and Leisure (AWL) is also able to advise clients in the areas of concept and design, feasibility…

read more

Aquatics / Attractions / Play / Waterparks

 
 

Fitness On Demand

Fitness On Demand™ is a market-leading developer of virtual group fitness products. Our innovative video delivery systems offer robust content and a simple-to-use, comprehensive web app. Fitness…

read more

Fitness / Technology / Wellness

 
 

SWIMPLEX AQUATICS

Swimplex Aquatics are a world-class company dedicated to the commercial pool, waterslide industry. We are Australian market leaders servicing all states Australia wide. Swimplex provide a full…

read more

Aquatics / Attractions / Design / Play / Waterparks

 
 

SICO SOUTH PACIFIC

SICO is at the forefront in innovative mobile folding and rolling, space efficient tables, stages, dance floors and many other products which help our customers optimise their use of space. Image…

read more

Entertainment / Events / Venues

 
 

IP HUB

Talk To Us For Independent Advice & Specialised Services We're business people, not sales reps IP HUB is one of Australia’s leading advisors on telecoms for both small businesses and…

read more

Marketing / Technology

 
 

WATERPLAY Solutions Corp

Whether your goal is increasing your centre's revenues or creating an engaging environment, why not add play to your project? If you're looking for stylish aquatic play features, kid-tested…

read more

Aquatics / Attractions / Play / Recreation / Waterparks

 
 

COMMERCIAL AQUATICS AUSTRALIA

Commercial Aquatics Australia provides aquatic solutions nationwide and is one of the largest and most experienced companies specialising in the design, construction, renovation, service, maintenance…

read more

Aquatics / Design / Play / Waterparks

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business