Gold Coast theme parks owner Village Roadshow extends takeover talks with BGH Capital

Movie World owner Village Roadshow has extended takeover talks with BGH Capital following the expiry of an initial four-week due diligence period.

MOVIE World owner Village Roadshow has extended takeover talks with BGH Capital by two weeks following the expiry of an initial four-week due diligence period.

On May 18 Village announced that it had entered into exclusive due diligence with private equity firm BGH Capital to buy the company.

BGH previously launched a takeover offer for the listed Village Roadshow in January this year, offering $4 cash per share and valuing the Movie World owner at $780 million.

Since then the shutdown of the company’s theme parks and cinemas has led to a slump in revenue and the share price. The company has been burning through up to $15 million a month in cash from the closure of its theme parks.

Gemma King and Lochie Holman (in front carriage) with Jack Cassidy and Rebecca King (in second behind them) enjoy the Superman Escape rollercoaster at Movie World on the Gold Coast before the park’s closure due to COVID-19. Picture: Adam Head

MORE VILLAGE NEWS

New York investors slam BGH bid for Gold Coast theme park owner Village Roadshow

Village Roadshow shares plunge while Ardent withdraws guidance for Main Event

Village half-year results: Gold Coast theme park owner reports earnings growth up 7pc to $39M

BGH’s revised offer included a four-week due diligence period with view to reaching a deal to acquire all the Village shares in a scheme of arrangement worth $2.40 per share.

This morning Village said that period has now been extended to June 30.

There will also be a further two-week extension if “the parties continue to actively pursue the potential transaction”.