The Village share price has edged lower today after Village Roadshow provided a further update on its acquision by BGH Capital.
The post Village (ASX:VRL) share price edges lower after BGH takeover update appeared first on Motley Fool Australia. –
Village Roadshow Ltd (ASX: VRL) today provided a further update on its proposed acquisition by BGH Capital announced on 7 August, 2020. The news has had a lacklustre effect on the Village share price which, at the time of writing, has edged 0.47% lower to $2.10. This compares to the All Ordinaries Index (ASX: XAO) which has risen 1.1% to 6,127 points.
The Village share price is flat today after the company announced that, under the agreement, its shareholders will receive up to $2.45 per share.
The offer will be either a $2.20 (structure A) or $2.10 (structure B) base price plus up to 25 cents per share, should the company be able to meet certain conditions. They include the reopening of theme parks and 75% of its cinema business reopening as well as Queensland border restrictions eased.
The implantation agreement is expected to be finalised on 16 December, 2020.
The entertainment company has been severely hit by COVID-19 lockdown restrictions. Village Roadshow saw its entire cinema exhibition, theme parks and film distribution close, putting the company at a material loss.
As Australia has been improving its management of the outbreak, however, Village Roadshow has been slowly opening its services. Theme parks are open but operating at a reduced capacity, and its film distribution is coming back online.
The cinema business, predominately in Victoria, is focused on the reopening with pricing and tactical initiatives. It could be December however, before any cinemas open to the public in that state.
About the Village share price
The Village share price has had an eventful year, reaching as high as $4.10 in January from the initial bidding war between BGH Capital and Pacific Equity Partners. The Village share price then fell to a low of 77 cents in March due to COVID-19 wreaking havoc on economic activity around the world. However, the Village share price now appears to be settled around its current levels where it has spent the majority of last four months.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
- Pure Foods (ASX:PFT) share price lifts, bucking the falling market
- Here’s why Soul Patts (ASX:SOL) is the king of ASX dividend shares
- Why the Chalice (ASX:CHN) share price rocketed 28% today
- Why the iCandy (ASX: ICI) share price is on a wild ride
- ASX 200 Weekly Wrap: ASX 200 snaps 4 week losing streak… just
Motley Fool contributor Aaron Teboneras owns shares of Village Roadshow Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.