Village Roadshow has entered into formal talks with a private equity firm to take over its Gold Coast theme parks and cinemas around the country.
The company told the ASX this morning that it has received a revised proposal from Melbourne-based BGH Capital, offering $2.20 per share which values the company at $429 million.
BGH will increase the offer to $2.40 per share if Village Roadshow’s theme parks including Movie World and Sea World, as well as cinemas reopen before shareholders meet to vote on the deal.
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That would value the company at $468 million.
The offer from BGH is well above Village Roadshow’s closing price on Friday of $1.76.
“After careful consideration of the proposal, VRL has entered into a Transaction Process Deed with BGH under which BGH will be provided with the opportunity to undertake confirmatory due diligence and negotiate transaction documentation over a four week period on an exclusive basis,” Village Roadshow said in a statement to the ASX.