Takeovers revealed for Village Roadshow and Apex Parks Group

Village Roadshow

Village Roadshow Limited (VRL) has agreed to takeover negotiations with private equity firm BGH Capital. Apex Parks Group LLC is being taken over by Cerberus Capital Management LP for $45 million.

In late March, VRL announced the temporary closure of its Gold Coast theme parks – Warner Bros Movie World, Sea World, Wet’n’Wild, and Paradise Country.

BGH’s takeover offer of up to $468.5 million includes various caveats if Australia’s theme park and cinema operator wants to receive the full offer price (via Variety).

The preliminary agreement was announced on Monday (May 18). If the caveats are not met, the offer’s value would drop to $430 million.

VRL closed attractions over coronavirus in March

BGH has agreed to offer up to A$2.40 per VRL share. This is considerably lower than the A$3.90 per share offered by PEP in December 2019 and the A$4 that BGH offered in January 2020.

The new bid would be reduced by A$0.12 per share if Warner Bros Movie World does not reopen by the time that VRL shareholders meet to discuss the transaction.

The bid would also be reduced by A$0.08 per share if 75 percent of VRL’s cinemas are not reopened by that time.

In addition, shareholders will also be asked to consider two separate acquisition structures – a combination of cash and shares in an unlisted bid company, or an all cash transaction at a lower price.

BGH takeover offer up to $468.5 million

Meanwhile, Apex Parks Group LLC is being taken over by a lender group led by Cerberus Capital Management LP for $45 million (via The Wall Street Journal).

Apex Parks Group, an amusement parks operator, filed for Chapter 11 bankruptcy protection in April. It also disclosed plans to be acquired by Cerberus Capital Management.

Apex previously said that the bankruptcy process would not affect the operations of its amusement parks and water parks. However, the attractions remain closed over COVID-19.