BGH Capital raises bid for Village Roadshow

BGH Capital raises bid for Village Roadshow

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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Advertisement

Related Stories

Tones and I co-manager Lemon Tree Music dancing into 2021

Tones and I co-manager Lemon Tree Music dancing into 2021

At the end of 2019 the founders of Lemon Tree Music, David Morgan...

"Business as usual" for Aussie cherry exports to China despite trade tension whispers

"Business as usual" for Aussie cherry exports to China despite trade tension whispers

Earlier this week, China's Global Times reported importers we...

Mask restrictions to ease as VIC goes eight days without local transmission

Mask restrictions to ease as VIC goes eight days without local transmission

Mask rules and capacity limits in office spaces will ease for Vic...

Pro Medicus pens $40m contract with Utah's largest healthcare provider

Pro Medicus pens $40m contract with Utah's largest healthcare provider

Health imaging company Pro Medicus (ASX: PME) has today announced...