BOWLING SPLIT TO AID THEME PARKS

ARDENT Leisure is selling its Australian bowling alleys and arcades for $160 million to free up funds to grow its US entertainment venues and attract customers back to its Gold Coast theme parks.

AMF Bowling Centres, Kingpin bowling lounges and Playtime arcades will be sold to The Entertainment and Education Group, a joint venture between private equity investor Quadrant and the Timezone Group’s Steinberg family.

Ardent has been working to improve its bowling alleys and add other attractions to the centres since 2016, but decided to sell when The Entertainment and Education Group offered an attractive price, chairman Gary Weiss said. The sale will free up funds for investment in Dreamworld and WhiteWater World, and Main Event bowling and arcade centres in the US, he said.

“While we are confident that the strategy for bowling and entertainment will deliver improved earnings, this sale relieves Ardent of the requirement to make the significant further investment needed to support this strategy and provides Ardent with increased flexibility to continue the expansion of Main Event and the reinvigoration of theme parks,” he said in a statement.

Ardent made a loss of $62.6 million in the 2016-17 financial year after a fatal accident at Dreamworld, which was followed by a 45 day shutdown. Visitor numbers plunged after Dreamworld and WhiteWater World reopened, and attendance was down 31 per cent over the financial year.

In August, Ardent estimated it would take another year for Dreamworld to recover from the accident.

The company has also seen turmoil in its top ranks, including the loss of chief executive Simon Kelly and the chief executive of Main Event in November, as well as a boardroom battle that led to Mr Weiss, a veteran corporate raider, taking over as chairman.

Yesterday, Mr Weiss said the company is working to boost theme park attendances by introducing new attractions and expanding its strategic partnerships.

Ardent expects investment in the parks will deliver increased earnings over time, supported by largescale development in suburbs near the parks.

The search for a new CEO of Main Event is progressing, Mr Weiss said, and additional financial flexibility will support a focus on revenue growth and acceler- ating the rollout of Main Event centres in US.

The sale of the bowling and entertainment business is expected to be completed in the first half of 2018.

Ardent shares were up 15.5 cents, or 9 per cent, at a six-week high of $1.885 at 12.50pm.