Village Roadshow Limited (ASX:VRL) announced that BGH Capital has reduced its takeover offer by 40%, offering $2.4 per share from its earlier offer of $4 in 2019. BGH’s acquisition proposal is subject to standard due diligence and VRL will spend 4 weeks to complete it with BGH. However, VRL warned that there was no certainty that the proposal will lead to a transaction.
VRL has taken measures to protect from COVID-19 which include:
- maintaining capital and liquidity
- participating in the Commonwealth Government’s JobKeeper arrangements to support employment for its employees
- delaying large capital expenditure projects post COVID-19 in Cinema Exhibition
VRL doesn’t expect its business to generate positive returns during the ramp up phase to reopen.