Village Roadshow moves toward acquisition by private equity firm

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.