Village Roadshow: Shareholders approve BGH takeover of Gold Coast theme park operators
Village Roadshow shareholders have backed a takeover of the theme park operator as the company’s bosses reveal the next step for its Gold Coast operations.
Gold Coast
Don't miss out on the headlines from Gold Coast. Followed categories will be added to My News.
VILLAGE Roadshow shareholders have backed a takeover of the theme park operator by BGH Capital leaving its Gold Coast CEO eagerly eyeing “building” for the future.
A roller coaster ride to secure the deal appears to be on the verge of success following a shareholders meeting on Monday afternoon where more than 950 people voted in favour of the Sydney-based private equity firm.
Village Roadshow CEO Clark Kirby said the company would turn its eye to “building the business” on the Gold Coast.
Gold Coast theme parks: First look at new Sea World Atlantis precinct rides
Gold Coast theme parks: Fates of popular rides and attractions revealed
“I am delighted with the outcome. It was an excellent price and a great outcome for shareholders,” he said.
“I am really looking forward to this new era with BGH Capital and continuing to build our business here on the Gold Coast.
“We now look forward to our biggest summer ever here on the Gold Coast, particularly with the opening of the first stage of the New Atlantis. ”
The first new ride at the Sea World precinct will open in December, with an announcement of a launch date for the first ride – understood to be within weeks – expected in coming days.
Top 10 Gold Coast theme park rides we miss from Dreamworld, Magic Mountain and Sea World
Village shares went into a trading halt on Monday morning ahead of the meeting, which was held at Movie World.
Village will now apply to the Federal Court for approval of the deal at a hearing which will be held on December 15.
Subject to court approval, trading of Village’s shares on the ASX will be suspended at 4pm on December 16.
If approved, the takeover will officially occur on December 29.
In November, Village said without the takeover the company faced net debt climbing from $311 million (as of June 30, 2021) to between $370 million and $380 million by the end of FY21.
It said the business generated positive operating cashflow of $5 million (on a pre-capital spending basis) from July 1 to October 31 when government subsidies are taken into account.
However, it forecast negative cashflow of $5 million to $15 million between November 1 and June 30 next year on the same basis as well as $55 million in capital expenditure.
Monday’s vote caps off a wild year for Village Roadshow which has contended with its theme parks being closed for three months during the COVID-19 shut down.
FULL DIGITAL ACCESS: JUST $1 A WEEK FOR FIRST 12 WEEKS
Talks surrounding a potential takeover bid began in December 2019 when private equity house Pacific Equity Partners proposed to buy Village.
In January, BGH Capital made an unsolicited proposed to buy the company, sending its share prices soaring.
In recent weeks there had been ongoing wrangling over the value of the shares, with BGH boosting its offer to $3 a share to win over unhappy shareholders.
The offer was above the independent expert’s assessment of the value of Village shares being in the range of $2.03 and $2.80.
‘It’ll end in a death of a child’: War of words as watchhouses overcrowd
Gold Coast police officers fear there could be a death in custody as a special investigation by the Bulletin reveals just how crammed the lockup have become. Full details
Woman dies in Gold Coast unit blaze
A woman has died and a crime scene has been declared after a unit fire in Surfers Paradise.