Village offer seeks $51m

Village offer seeks $51m

VILLAGE Roadshow has announced a $51 million share offer as part of a plan to cut debt and help offset the impact of its struggling theme parks.

Having sought a trading halt on the ASX (TD yesterday), the group today revealed details of a pro rata non-renounceable entitlement offer at a new share price of $1.65.

Village says the fully underwritten offer is supported by its shareholders and represents a 24.3% discount on the corporation’s last closing share price of $2.18 on Fri.

The move follows the group’s announcement last week that it will sell its loss-making Wet’n’Wild Sydney waterpark to the Spanish operator Parques Reunidos to raise $37 million (TD 02 Jul).

Village also provided a trading update, in which it said its Queensland theme parks continue to be affected by the tragedy at rival attraction Dreamworld.

Village operates the Sea World, Warner Bros. Movie World and Wet’n’Wild Gold Coast parks.

“As happened in similar tragedies overseas, attendance has been impacted on rides,” Village said.

“Gold Coast parks also experienced lower than expected attendances over the Easter school holidays in Apr, which coincided with the Commonwealth Games.”

Village said it expected a net loss after tax of between $10 and $6 million this financial year, in line with a previous guidance provided in Apr.

Source: traveldaily