A bid to acquire Village Roadshow (ASX: VRL) from private equity firm BGH Capital has been supercharged this morning by close to 70 cents per share.
BGH has increased the bid from $2.32 per share to $3.00 per VRL share, valuing the transaction at close to $586 million.
The offer has the backing of the VRL board which is unanimously recommending shareholders vote in favour of the deal, as well as the support of a key shareholder.
Earlier this month Spheria, a substantial shareholder in VRL with a holding of 6.88 per cent of shares, announced it intends to vote in favour of the proposal.
"The BGH Transaction provides the opportunity for all VRL shareholders to realise an attractive cash price for all of their VRL, in a very uncertain operating environment," says the VRL board.
The cash consideration for the scheme is now above the Independent Expert's value range of $2.03 to $2.80 per VRL share.
The company is currently engaging with ASIC and the courts to determine further steps to be taken as a result of the increased consideration.
As such, VRL will postpone its Monday 7 December scheme meeting subject to court approval, with a new date to be determined.
Shares in VRL are up 15.92 per cent to $2.84 per share at 12.33pm AEDT.
Business News Australia