EVT Divested Its Unit CineStar To Improve The Economies Of Scale To Its Other Businesses


EVENT Hospitality & Entertainment Limited (ASX: EVT) made an announcement regarding their agreement with Vue International Bidco Plc.  EVENT Hospitality & Entertainment Limited has agreed to sell its German cinema exhibition division, CineStar, to Vue International Bidco Plc. The upfront payment of €130 million (A$210 million) and variable consideration of up to €91.8 million (A$148 million) will be made based on its admission to the Germany market for the calendar year 2019. It equates maximum enterprise value for CineStar worth of A$358 million which is equivalent to €221.8 million.

Under the strategic review of the group, it was announced that CineStar does not bring any economies to scale to other businesses of the EVT. It would be a better decision if the capital is being utilized in the identified projects with high growth. Rothschild & Co were engaged to advise an outright sale of the business. Subsequently, an offer to buy the unit was received from Vue International Group was and it got accepted immediately. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

As per Jane Hastings who is the CEO of EVT says that there is a huge potential for upside to the value realized and sale of CineStar which will create values for the shareholders at an attractive price. The company is even confident that the divestment of the CineStar is best in the interest of the shareholders and the generate capital will be used for other value-added opportunities. The company already has prepared a strong pipeline for its potential future development programs in medium to long term.

Mr. Alan Rydge, who is the chairman of EVT confirmed that the sale was excellent outcome by the board and is best in the interest of the shareholders of the company and it also gives an opportunity for reinvestment into the currently identified development projects.

The company has shown a positive performance throughout its journey. The performance since its inception was 220.9%. The one year, 5 years and 10 years performance of the company is 9.03%, 66.46%, and 278.75%. However, the past 1 month the company shows a negative performance of -5.59%. For the year ending 30 June 2018, the total assets of the company stood at $1,730.579 million and total liabilities came in at $641.981 million. This shows that the company has a potential to meet its long-term liabilities. The current asset of the company is $188.891 Mn, and the current liabilities of the company is $226.059 million. This represents that the company is not in a position to meet its short-term obligations. The total shareholder’s equity is worth $1.088.598 million. During this period, the company made a net profit of $111.910 Mn. The net cash generated through the operating activities was $207.749 million. The net cash used in the investing activities was $178.665 million and the net cash used in the financing activities was $29.090 million. The cash and cash equivalent at the end of the period was $95.564 million.

EVT’s share traded at A$14.10 with a market capitalization of circa $2.25 billion and PE ratio 20.04x as of October 22, 2018.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Checkout our Free Dividend Stocks Report

Specially made for income-hungry investors, Invest in growing Franked Dividends an opportunity that should not be missed.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report