Dreamworld Set For Cash Injection As Parent Company Sells Major Asset
Theme Park enters financial windfall
Theme Parks CEO, Greg Yong - GC Bulletin
Ardent Leisure (ASX), the parent company of USA-based Main Event chain, has agreed to sell 100% of its business for a whopping $1.1 billion (AUD).
It's a much-anticipated move which sparks a financial windfall for the Gold Coast attraction parks.
Ardent will now enter an agreement into a merger plan with Dave & Buster's Entertainment Inc, along with New York-based investment firm Redbird who acquired an interest percentage in Main Event two years ago.
The pending move will inject $487 million (USD) into Ardent's operations, which will in-turn provide major boosting for the Australian-based theme parks.
As it stands, Ardent represents ownership of Dreamworld and WhiteWater World parks in addition to the Gold Coast's SkyPoint attraction which was opened in 2005.
While shareholders will vote on transaction details at an extraordinary general meeting (EGM) this year, a large chunk of proceeds will help pay off a debt to the Australian Taxation Office, and additional costs of agreement.
Ardent plan to use remaining funds to boost their theme parks, providing Dreamworld with funding towards rides and shopping outlets.
The US-based company expects around $430 million will be paid to their shareholders if the deal is successful. Once the debt is paid for, Ardent Leisure will pocket at least $150 million in profit gains.
Ardent Leisure chairman Dr Gary Weiss spoke on the long-awaited transaction, and the boost it will provide ASX shares.
"Having regard to the valuation reflected by the transaction and its terms and conditions, the Board believes that this transaction with Dave & Buster’s is in the best interests of Ardent Leisure shareholders," he said."
"Furthermore, if the transaction completes, Ardent Leisure shareholders will receive a significant distribution of cash and retain continued ownership in a leading theme parks operator with a strong balance sheet and highly experienced management team that is poised to benefit from the significant investments made in the business and the reopening of Australia’s economy and its international borders."
- Ardern Leisure Chairman
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