Movie World is back
Negotiations to continue in takeover of Village Roadshow
MARATHON negotiations between BGH Capital and takeover target Village Roadshow have entered a ninth week as the Movie World owner celebrates reopening its flagship theme park.
The family favourite reopens at 9.30am for the first time since March 23 along with water park Wet’n’Wild.
One thousand staff across Movie World and Wet’n’Wild will return to work providing a boost to the Glitter Strip economy.
It means the entire Village portfolio, including Sea World, Australian Outback Spectacular, Paradise Country and Top Golf, is operating again. The company has attracted strong crowds across its Sea World and Paradise Country parks since July 1 with average daily attendance of 4500. Destination Gold Coast has released a new video to coincide called You Deserve a Holiday to target family tourism.
Village CEO Clark Kirby said the reopenings, which follow a COVID-safe plan, is an important step forward.
Village has been under pressure since its forced closure due to the COVID-19 pandemic. It has been burning $15m in cash each month the parks have been closed with net debt projected to reach $315m by June 30.
“We have the whole company humming and are starting to see good momentum,” Mr Kirby said. “It is wonderful having all our key people back in the office and park.”
But he was tight-lipped about talks with Sydney fund BGH Capital. BGH lobbed its second offer of $2.40 per share for Village on May 18. A revised offer followed a previous $4 per share BGH offer.
Talks were extended in June for a month then by another fortnight.
“They (the talks) are still progressing,” Mr Kirby said.
“We have just extended our exclusivity period with them but that’s all I can say.”
Mr Kirby refused to say whether COVID-19 was hampering talks or comment on negotiations with the State Government on a longterm funding deal. BGH has been contacted for comment.
The BGH offer has attracted criticism from both shareholders and analysts for undervaluing the company.
New York-based activist investor Mittleman Investment Management, which on Friday announced it increased its Village stake to 8.5 per cent, has previously called the offer “highly conditional, unusually complex, and blatantly opportunistic”.
Analyst Citi has supported the “opportunistic” view.
For Movie World’s restart, a special parade with all superhero characters has been prepared to welcome visitors.
Technical services leading hand Rob Goodwin said he was feeling relieved to finally see Movie World reopen.
He and the other 25 staff in the engineering department have been frantically working in recent days to get the rides ready for July 15.
“We left in March so there was just a skeleton crew coming in every few weeks to keep things moving. Then we got the call up a month-anda-half ago to all come back and get things operational again,” he said. “Knowing things were getting back to normal was a big relief.”
Mr Goodwin said the downturn enabled the engineering team to have all three shifts working together for the first time: “We have been able to put in a lot of more guys in the same areas to get everything back on track so that worked out good in that regard. It has got us back on top of all the rides we needed to do plus do extra stuff that we couldn’t normally do.”