The nagging battle for Village Roadshow continues with a new, higher offer price for the company from private equity suitor, BGH Capital.
The new price will be increased by 12 cents a share to a maximum of $2.32.
That’s after BGH agreed to a Theme Park Uplift Event, due to Warner Bros. Movie World and Sea World being reopened: that uplift was a number of conditions in the offer when launched earlier this year.
But other conditions in the offer have been activated, meaning a further 13 cents a share will not be made available.
The so-called Border Uplift event and Cinema Uplift Events will not be triggered because the Queensland border remains closed and major film releases have been delayed.
The Village Roadshow share price rose 2.6% to $2.35 yesterday after the news of the higher price was released.
If the first option – structure A – receives 75% of the votes by shareholders, $2.32 cash will be paid for each Village Roadshow share, including the uplift. Shareholders also have the option to take 1 HoldCo (the bidding vehicle) share for every Village Roadshow share under structure A.
Structure B will be considered by shareholders if structure A is not approved and allows for the payment of $2.22 per Village Roadshow share, including the uplift.
Structure B will also require 75% of the votes from shareholders in favour of the offer to go ahead. Under Structure B shareholders will also be given the option to retain all of their Village Roadshow shares, which will be delisted from the ASX.
Village Roadshow’s independent directors have recommended that the company’s shareholders vote in favour of both structure A and structure B as part of the offer by BGH.
An independent expert has also recommended that the offer is in the best interests of Village Roadshow shareholders.
