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Ardent Leisure accused of being in ‘dream world’ by activist investor

Ayesha de Kretser
Ayesha de KretserSenior reporter

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Key Points

  • Ardent’s market value implies its parks and surplus land are valued at only $57 million.
  • David Kingston said management failed to deliver on a promise to turn the company around.
  • Ardent will continue to assess options to return capital to shareholders.

A battle is brewing for control of Dreamworld theme park owner Ardent Leisure, with activist investor David Kingston requisitioning the company’s share register to drum up discontent over what he claims is poor performance by management.

Mr Kingston has written to Ardent shareholders demanding that the company return its $141 million of idle cash via a buyback to support its ailing stock price, or alternatively, a straight capital return. He also wants Ardent to actively pursue merger and acquisition options, or a sale of key assets including its land.

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Ayesha de Kretser is a senior reporter with The Australian Financial Review covering the aviation and tourism sectors. She has previously reported on banking, mining and commodity markets. Connect with Ayesha on Twitter. Email Ayesha at ayesha.dekretser@afr.com.au

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    Original URL: https://www.afr.com/companies/tourism/ardent-leisure-accused-of-being-in-dream-world-20230725-p5dr0n