Village Roadshow announces takeover offer for Sydney Attractions Group

[Chaos-Maniac]

I didnt know where to post this, so sorry. As Richard has posted a new news bulletin on the site about 'Village Roadshow announces takeover offer for Sydney Attractions Group' [link- http://roller-coaster.com.au/article.php?aid=159 ]. I've been thinking, what is your thoughts on this? I really think Village Roadshow should take over Sydney Attractions Group, I feel the attractions in Sydney that the Attractions Group own have so much more potential that isn't being reached and with Village Roadshow being in control, they could reach this potential as they own some fantastic attractions in Queensland and would obvisously have more experiance. With them taking over they could maybe even open new attractions or a similar version to Sega World [we can only dream, right?]. Anyways, your thoughts.

[joz]

My guts telling me that Village would do well with SAQ. They already own SW, and someone like Trevor Long would be a great mind to have when managing something like Sydney Aquarium. As for Sydney Wildlife World, I think again that there are people within Village who know how to market this sort of thing. Think Paradise Country; there were people within Village then who could take an under performing attraction based on Australian animals to new heights, and I feel they could probably do the same again for SWW

[Richard]

Village Roadshow has been putting the feelers out on this company for a few years now, having already owned a 20% stake for a while now. It's evident that the company is at present about to really see the fruits of its huge investment into Wildlife World start to pay off, which is why Village wants to get in now, as its value will increase significantly in the future. I'm very much for the idea of the buyout because it'll ultimately result in far greater financial strength and leverage for WVTP. Unlike Macquarie Leisure which seems to be continually diluting its corporate vision by diversifying into more and more industries, it'd be interesting to see WVTP concentrate solely on major tourist attractions and focus their expertise solely on this. I suspect it's highly likely that Village will use a successful buyout here to split the parks off into a separate company and float it on the share market. Since buying out Warner Bros. and then Nara this has been a strong rumour in the financial sector. This possible buyout here only strengthens this possibility and will give the company the size and diversity it'd need to be able to stand on its own and provide a sturdy foundation to allow for a high-growth future by further takeovers and expansions.

[taronga]

If this takeover goes through, i hope it leads to a new theme park for Sydney.

[Chaos-Maniac]

If this takeover goes through, i hope it leads to a new theme park for Sydney.

In saying that, they could maybe buy the building in which Sega World once occupied in Darling Harbour and create a little indoor park similar to what Sega World was, but themed around a mini Movie World which I think, is seen as Village Roadshow's strongest Australian park? It could be like a little 'taste' of Movie World but in Sydney and indoors? This idea may sound silly, but why doesn't Village Roadshow produce a takeover offer for Luna Park Sydney and transform it to the real beauty of which it once was? I see this a viable option for them once they takeover [if they do] Sydney Attractions Group. They could full re-vamp the Sydney tourism/attraction mood. I really feel some potential for Village Roadshow and they're previous experiance up at the Gold Coast in Sydney.

[Richard]

As was predicted, Sydney Attractions Group have formally advised shareholders NOT to accept the $6.01 per share offer from Village Roadshow believing it undervalues the company. That's not the end of it though. The conditions of the offer are for at least 50 per cent ownership. They already own just under 20%, so if 30% agree to the offer then it'll be done. From there Village would be the majority shareholder and be able to use their controlling interest to initiate changes to the company's operations.

[taronga]

Now why didn't Village take aggressive action like this when Wonderland or Sega World were going under?

[DaptoFunlandGuy]

Now why didn't Village take aggressive action like this when Wonderland or Sega World were going under?

Well, for one, Sunway Group were after the money for the land, which was worth much more than the purchase of the park itself. Village would not have paid the millions Sunway was asking for, because to continue running a theme park on that site would not have been cost effective, unless they spent millions more developing the area into a destination. Besides, Village is only buying a 50% stake in the SAG. Sunway would never have agreed to just a 50% buyout, because then they would be left with an investment in a business that they only purchased to make a profit from, and the profits would have been controlled by Village Roadshow then. Let's not forget also that when Wonderland went under, Village was still Warner Village with a part American ownership. They hadn't even had full control of their own company at that stage.

[Richard]

Village Roadshow have identified Sydney Attractions Group as an underperforming company that they can make a reasonably cheap offer on. It's also in a significantly different market than their Gold Coast properties, so it is in no danger of having an impact on their theme parks. Owning a major park in Sydney would ultimately be detrimental to their Gold Coast parks given that their business model for these parks is based around strong interstate attendance. Village Roadshow has always been an Australian company. Warner Bros. only owned a 50% stake in Warner Village Theme Parks, which ultimately wouldn't have affected Village Raodshow's ability to pursue such a buyout.