Village Roadshow seeks government support as theme parks reopen
Takeover target Village Roadshow has revealed that it is in talks with the Queensland government over funding that would support its theme parks as they prepare to reopen following the coronavirus crisis.
]The unconventional measure comes as private equity group BGH Capital continues its due diligence on the company, for which it made a takeover offer last month.
Village this month granted the Ben Gray-led BGH more time to undertake due diligence on its operations as part of its $468.5m takeover proposal. A deadline of June 30 is fast approaching but the private equity house could also seek a further two-week extension.
However, US activist investor Mittleman Brothers last month dealt a blow to BGH’s plan, labelling its takeover proposal opportunistic and criticising it for taking advantage of the coronavirus crisis.
Mittleman Brothers chief investment officer Chris Mittleman called BGH’s takeover play a “shameful act” under the circumstances and he has since bumped up his stake in Village to 7.49%.
Village said it was seeking to increase its debt financing facilities and disclosed it was in “advanced discussions” with its existing bank syndicate and the Queensland government.