Sydney Aquariumcould get a Seaworld-like makeover. Photo / MARK MITCHELL
Sydney Aquariumcould get a Seaworld-like makeover. Photo / MARK MITCHELL
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Sydney - Village Roadshow says its experience managing big theme parks, such as Seaworld, could be applied to venues like Sydney Aquarium and Wildlife World if it succeeds in gobbling up their parent company.
The cinema and entertainment chain has launched a A$6.01 per share offer for SydneyAttractions Group, valuing the company at A$197.9 million ($237.68 million).
Village Roadshow already owns 19.96 per cent of the target and hopes to take up the other 80 per cent with the bid, which represents a 6.6 per cent premium to the share's volume weighted average trading price for the 30 days preceding the bid.
Chief operating officer Peter Foo said the premium was deliberately modest because corporate speculation had artificially inflated the share price.
"A large lump of stock was traded when a major shareholder exited their investment for A$4.50 not that long ago. We think the prices are reflective of the fact we've been in the market buying," Foo said.
Over the past five years, Sydney Attractions Group has posted only modest growth in earnings before interest tax and depreciation, while net profit has declined from A$6.2 million to A$1.2 million.
Foo said Village Roadshow could revive its fortunes, drawing on its experience with Gold Coast theme parks.
The marketing of Wildlife World in Sydney was of particular concern, he said. Sydney Attractions Group also owns Manly Oceanworld, Sydney Tower & Oztrek and Shark Drive Xtreme.
Village Roadshow posted a net profit for the 2006-07 financial year of A$45.08 million, a turnaround on its A$40.7 million loss in the previous financial year. Its theme park division was particularly strong, achieving a A$40 million operating profit compared with A$29.6 million in the prior year.
