Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Back on the 26 April, church donor management tech play <strong><a href="https://www.smartkarma.com/entities/pushpay-holdings-ltd" target="_blank" data-smartkarma-citation="entities:13737:1" rel="noopener">Pushpay Holdings (PPH NZ)</a></strong> <a href="https://www.nzx.com/announcements/390975" target="_blank" rel="noopener">announced</a> "<em>unsolicited, non-binding and conditional expressions of interest or approaches from third parties</em>". No price was mentioned. </li>
<li>Roughly a month later, BGH Capital and Sixth Street, both existing shareholders,<a href="https://www.nzx.com/announcements/392626" target="_blank" rel="noopener"> entered into</a> a cooperation agreement with respect to a potential transaction for Pushpay. Again, no price was provided. </li>
<li>Pushpay has now <a href="https://www.nzx.com/announcements/400268" target="_blank" rel="noopener">announced</a> it has received a non-binding proposal. Word on the street this involves BGH. Still, no price was made public. A 30% premium to undisturbed is ~NZ$1.34/share.</li>
</ul>


Back on the 26 April, church donor management tech play Pushpay Holdings (PPH NZ) announced "unsolicited, non-binding and conditional expressions of interest or approaches from third parties". No price was mentioned. 
Roughly a month later, BGH Capital and Sixth Street, both existing shareholders, entered into a cooperation agreement with respect to a potential transaction for Pushpay. Again, no price was provided. 
Pushpay has now announced it has received a non-binding proposal. Word on the street this involves BGH. Still, no price was made public. A 30% premium to undisturbed is ~NZ$1.34/share.


Pushpay: BGH Resurrects The Catholic Opportunity

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Coast Entertainment Holdings L / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ardent-leisure-group-ltd" target="_blank" data-smartkarma-citation="entities:29059:1" rel="noopener">Ardent Leisure Group Ltd (ALG AU)</a>'s shareholders have approved <a href="https://www.smartkarma.com/entities/dave-buster-s-entertainment-inc" target="_blank" data-smartkarma-citation="entities:19774:1" rel="noopener">Dave &amp; Buster'S Entertainment, Inc (PLAY US)</a> acquisition of Main Event business. Ardent will receive A$670.3 million.</li>
<li>Shareholders will receive a total return of A$0.95 through capital return (A$0.46) and unfranked special dividends (A$0.49) on 13 July. </li>
<li>Precedent transactions and peer multiples suggest that the remaining business is worth A$0.23-0.30, implying a 16%-21% upside to the last close. The remaining business would be attractive to private equity. </li>
</ul>



Ardent Leisure Group Ltd (ALG AU)'s shareholders have approved Dave &amp; Buster'S Entertainment, Inc (PLAY US) acquisition of Main Event business. Ardent will receive A$670.3 million.
Shareholders will receive a total return of A$0.95 through capital return (A$0.46) and unfranked special dividends (A$0.49) on 13 July. 
Precedent transactions and peer multiples suggest that the remaining business is worth A$0.23-0.30, implying a 16%-21% upside to the last close. The remaining business would be attractive to private equity. 


Ardent Leisure’s EGM Approves the Main Event Sale

<div>
<p>On the 18 May, Aussie theme parks and movie theater operator <a href="https://www.smartkarma.com/entities/village-roadshow-ltd" target="_blank" data-smartkarma-citation="entities:7836:1" rel="noopener">Village Roadshow (VRL AU)</a> entered into <a href="https://www.asx.com.au/asxpdf/20200518/pdf/44hx6rjz13vp2b.pdf" target="_blank" rel="noopener">exclusive talks</a> with BGH Capital, which was followed on the 7 August with the <a href="https://www.asx.com.au/asxpdf/20200807/pdf/44l8s8vg0qgjdy.pdf" target="_blank" rel="noopener">entering</a> into an Implementation Agreement, such that VRL shareholders would receive, under Structure A, up to A$2.45/share comprising A$2.20/share (A$2.10/share under Structure B) plus an additional A$0.25/share upon the re-opening of theme parks and cinemas, and Queensland's border being open to any person from NSW and Victoria. </p>
<p>At the time, I viewed the offer as being overly wrought, highly opportunistic, and heavily caveated, enabling the key shareholders to remain largely invested in the back-end; and failing that option (Structure A) - penalizing minorities via a lower cash option under Structure B.</p>
<p>Mittleman Investments agreed, and <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02291037-3A552048?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">said</a> it intends to vote its shares against both alternatives. Spheria Asset Management <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02307851-3A555222?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">chimed</a> in early this month.</p>
</div>
<div>
<h3>A Recent Timeline of Events</h3>
</div>
<div>
<div>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 93.7143px;">
<h3>Date</h3>
</td>
<td style="width: 610.286px;">
<h3>Date in the Date</h3>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">29-Aug-19</td>
<td style="width: 610.286px;">
<p>Release of  <a href="https://www.asx.com.au/asxpdf/20190829/pdf/44800hyl7gkz2s.pdf" target="_blank" rel="noopener">FY19</a>  results. VRL reported an underlying profit of A$20.6mn in against a loss of $7.3mn the previous year. The company declared a return to dividends with a fully franked dividend of A$0.05/share. At the time of these full-year results, Burke said the key issues with John had largely been addressed.</p>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">19-Dec-19</td>
<td style="width: 610.286px;">Pacific Equity Partners <a href="https://www.asx.com.au/asxpdf/20191219/pdf/44cqw7hyn865wn.pdf" target="_blank" rel="noopener">tabled</a> a non-binding Offer at A$3.90/share, a 21.9% premium to last close, by way of a Scheme. PEP has also agreed to buy a 19% stake (at $3.90/share) from VRC, which would indicate Burke and the brothers are on the same page.<br><br>
<p>This is a <a href="https://www.asx.com.au/asxpdf/20191219/pdf/44cqwl4t5yh94r.pdf" target="_blank" rel="noopener">call option</a> on 19% of shares out - or Relevant Shares - between PEP and VRC. If an alternative offer is recommended by Village's board, the call option can be exercised. Voting remains with VRC until the Relevant Shares are exercised.</p>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">23-Jan-20</td>
<td style="width: 610.286px;">VRL received a non-binding, indicative <a href="https://www.asx.com.au/asxpdf/20200124/pdf/44dh80xy1977ll.pdf" target="_blank" rel="noopener">offer</a> from BGH Capital of $4.00/share, a 25% premium to last close, and a small premium to PEP's $3.90/share offer the previous month.</td>
</tr>
<tr>
<td style="width: 93.7143px;">19-Mar-20</td>
<td style="width: 610.286px;">
<p>VRL <a href="https://www.asx.com.au/asxpdf/20200319/pdf/44g6ftp3syn8tb.pdf" target="_blank" rel="noopener">said</a> they continue to assist PEP and BGH with their respective due diligence. Exposed to cinemas and theme parks amidst the virus - VLR was down 75% from its recent high at this time.</p>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">18-May-20</td>
<td style="width: 610.286px;">
<a href="https://www.asx.com.au/asxpdf/20200518/pdf/44hx6rjz13vp2b.pdf" target="_blank" rel="noopener">Enters</a> into exclusive discussions with BGH.</td>
</tr>
<tr>
<td style="width: 93.7143px;">16-Jun - 5-Aug</td>
<td style="width: 610.286px;">Various announcements extending the exclusivity agreement with BGH</td>
</tr>
<tr>
<td style="width: 93.7143px;">7-Aug-20</td>
<td style="width: 610.286px;">
<a href="https://www.asx.com.au/asxpdf/20200807/pdf/44l8s8vg0qgjdy.pdf" target="_blank" rel="noopener">Entering</a> into an Implementation Agreement with BGH. </td>
</tr>
<tr>
<td style="width: 93.7143px;">28-Aug-20</td>
<td style="width: 610.286px;"><a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02273676-3A548632?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">FY20 results</a></td>
</tr>
<tr>
<td style="width: 93.7143px;">25-Sep-20</td>
<td style="width: 610.286px;">"<a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02285343-3A551068?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">Film Deferral Event</a>" under the Implementation Agreement - no A$0.08/share additional payment.</td>
</tr>
<tr>
<td style="width: 93.7143px;">2-Oct-20</td>
<td style="width: 610.286px;">Mittleman bumps to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02290462-3A551960?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">10.09%</a>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">7-Oct-20</td>
<td style="width: 610.286px;">Mittleman says it will vote <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02291037-3A552048?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">against</a>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">8-Oct-20</td>
<td style="width: 610.286px;">Spheria, having dipped below 5% back on xx, now has <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02292760-3A552377?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">6.20%</a>.</td>
</tr>
<tr>
<td style="width: 93.7143px;">9-Oct-20</td>
<td style="width: 610.286px;">Scheme Meeting <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02292036-3A552242?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">confirmed</a> for the 26 November</td>
</tr>
<tr>
<td style="width: 93.7143px;">12-Oct-20</td>
<td style="width: 610.286px;">Scheme Booklet <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02292758-3A552376?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">lodged</a> with ASIC and expected to be despatched on or before the 21 October, and the Scheme Meetings tentatively set for the 26 November.</td>
</tr>
<tr>
<td style="width: 93.7143px;">28-Oct-20</td>
<td style="width: 610.286px;">Spheria bumps to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02302992-3A554387?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">7.80%</a>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">4-Nov-20</td>
<td style="width: 610.286px;">Mittleman bumps to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02305802-3A554879?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">11.24%</a>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">9-Nov-20</td>
<td style="width: 610.286px;">Uplift of A$0.12/share <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02306239-3A554956?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">locked in</a>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">10-Nov-20</td>
<td style="width: 610.286px;">Mittleman bumps to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02308127-3A555266?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">12.87%</a>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">12-Nov-20</td>
<td style="width: 610.286px;">Spheria says it will vote <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02307851-3A555222?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">against</a>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">12-Nov-20</td>
<td style="width: 610.286px;">Mittleman bumps to <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02311114-3A555880?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">14.34%</a>
</td>
</tr>
</tbody>
</table>
</div>
</div>
<div>
<div style="text-align: left;" class="content-caption">Source: ASX</div>
</div>
<h3>The New News</h3>
<div></div>
<p>This morning, VRL <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02312095-3A556080?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it had agreed with BGH that the terms are now A$3.00 under the Structure A Scheme and A$2.95/share under the Structure B Scheme, as had been rumoured last Friday. <br><br>Spheria now intends to vote in favour of both A and B. No word from Mittleman as yet.<br><br>The Scheme Meeting will now expected to be held on the 7 December, subject to Court approval.</p>
<div>
<p>More below the fold.</p>
</div>
<div>
<p></p>
</div>


On the 18 May, Aussie theme parks and movie theater operator Village Roadshow (VRL AU) entered into exclusive talks with BGH Capital, which was followed on the 7 August with the entering into an Implementation Agreement, such that VRL shareholders would receive, under Structure A, up to A$2.45/share comprising A$2.20/share (A$2.10/share under Structure B) plus an additional A$0.25/share upon the re-opening of theme parks and cinemas, and Queensland's border being open to any person from NSW and Victoria. 
At the time, I viewed the offer as being overly wrought, highly opportunistic, and heavily caveated, enabling the key shareholders to remain largely invested in the back-end; and failing that option (Structure A) - penalizing minorities via a lower cash option under Structure B.
Mittleman Investments agreed, and said it intends to vote its shares against both alternatives. Spheria Asset Management chimed in early this month.


A Recent Timeline of Events







Date


Date in the Date



29-Aug-19

Release of  FY19  results. VRL reported an underlying profit of A$20.6mn in against a loss of $7.3mn the previous year. The company declared a return to dividends with a fully franked dividend of A$0.05/share. At the time of these full-year results, Burke said the key issues with John had largely been addressed.



19-Dec-19
Pacific Equity Partners tabled a non-binding Offer at A$3.90/share, a 21.9% premium to last close, by way of a Scheme. PEP has also agreed to buy a 19% stake (at $3.90/share) from VRC, which would indicate Burke and the brothers are on the same page.  
This is a call option on 19% of shares out - or Relevant Shares - between PEP and VRC. If an alternative offer is recommended by Village's board, the call option can be exercised. Voting remains with VRC until the Relevant Shares are exercised.



23-Jan-20
VRL received a non-binding, indicative offer from BGH Capital of $4.00/share, a 25% premium to last close, and a small premium to PEP's $3.90/share offer the previous month.


19-Mar-20

VRL said they continue to assist PEP and BGH with their respective due diligence. Exposed to cinemas and theme parks amidst the virus - VLR was down 75% from its recent high at this time.



18-May-20

Enters into exclusive discussions with BGH.


16-Jun - 5-Aug
Various announcements extending the exclusivity agreement with BGH


7-Aug-20

Entering into an Implementation Agreement with BGH. 


28-Aug-20
FY20 results


25-Sep-20
"Film Deferral Event" under the Implementation Agreement - no A$0.08/share additional payment.


2-Oct-20
Mittleman bumps to 10.09%



7-Oct-20
Mittleman says it will vote against



8-Oct-20
Spheria, having dipped below 5% back on xx, now has 6.20%.


9-Oct-20
Scheme Meeting confirmed for the 26 November


12-Oct-20
Scheme Booklet lodged with ASIC and expected to be despatched on or before the 21 October, and the Scheme Meetings tentatively set for the 26 November.


28-Oct-20
Spheria bumps to 7.80%



4-Nov-20
Mittleman bumps to 11.24%



9-Nov-20
Uplift of A$0.12/share locked in



10-Nov-20
Mittleman bumps to 12.87%



12-Nov-20
Spheria says it will vote against



12-Nov-20
Mittleman bumps to 14.34%







Source: ASX

The New News

This morning, VRL announced it had agreed with BGH that the terms are now A$3.00 under the Structure A Scheme and A$2.95/share under the Structure B Scheme, as had been rumoured last Friday.   Spheria now intends to vote in favour of both A and B. No word from Mittleman as yet.  The Scheme Meeting will now expected to be held on the 7 December, subject to Court approval.

More below the fold.





Village Roadshow: Rollercoaster Economics

<div>
<p>Back on the 18 May, Aussie theme parks and movie theater operator <a href="https://www.smartkarma.com/entities/village-roadshow-ltd" target="_blank" data-smartkarma-citation="entities:7836:1" rel="noopener">Village Roadshow (VRL AU)</a> entered into <a href="https://www.asx.com.au/asxpdf/20200518/pdf/44hx6rjz13vp2b.pdf" target="_blank" rel="noopener">exclusive talks</a> with BGH Capital after the PE outfit returned to the table with a revised, and lower Offer of <a href="https://www.asx.com.au/asxpdf/20200518/pdf/44hx6rjz13vp2b.pdf" target="_blank" rel="noopener">A$2.10-$2.40/share</a>. That upper end of the range was subject to the reopening of Sea World and Movie World, AND the majority of its cinemas. The high-end of the range represented a 36% premium to last close.</p>
<p>After various extensions to that exclusivity arrangement, VRL has now <a href="https://www.asx.com.au/asxpdf/20200807/pdf/44l8s8vg0qgjdy.pdf" target="_blank" rel="noopener">entered</a> into an Implementation Agreement such that VRL will receive, under Structure A, up to A$2.45/share comprising A$2.20/share (A$2.10/share under Structure B) plus an additional A$0.25/share upon the re-opening of theme parks and cinemas, and Queensland's border being open to any person from NSW and Victoria. </p>
</div>
<div>
<h2>A Recent Timeline of Events</h2>
</div>
<div>
<div>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 93.7143px;">
<h2>Date</h2>
</td>
<td style="width: 610.286px;">
<h2>Date in the Date</h2>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">29-Aug-19</td>
<td style="width: 610.286px;">
<p>Release of  <a href="https://www.asx.com.au/asxpdf/20190829/pdf/44800hyl7gkz2s.pdf" target="_blank" rel="noopener">FY19</a>  results. VRL reported an underlying profit of A$20.6mn in against a loss of $7.3mn the previous year. The company declared a return to dividends with a fully franked dividend of A$0.05/share. At the time of these full-year results, Burke said the key issues with John had largely been addressed.</p>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">19-Dec-19</td>
<td style="width: 610.286px;">Pacific Equity Partners <a href="https://www.asx.com.au/asxpdf/20191219/pdf/44cqw7hyn865wn.pdf" target="_blank" rel="noopener">tabled</a> a non-binding Offer at A$3.90/share, a 21.9% premium to last close, by way of a Scheme. PEP has also agreed to buy a 19% stake (at $3.90/share) from VRC, which would indicate Burke and the brothers are on the same page.<br><br>
<p>This is a <a href="https://www.asx.com.au/asxpdf/20191219/pdf/44cqwl4t5yh94r.pdf" target="_blank" rel="noopener">call option</a> on 19% of shares out - or Relevant Shares - between PEP and VRC. If an alternative offer is recommended by Village's board, the call option can be exercised. Voting remains with VRC until the Relevant Shares are exercised.</p>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">23-Jan-20</td>
<td style="width: 610.286px;">VRL received a non-binding, indicative <a href="https://www.asx.com.au/asxpdf/20200124/pdf/44dh80xy1977ll.pdf" target="_blank" rel="noopener">offer</a> from BGH Capital of $4.00/share, a 25% premium to last close, and a small premium to PEP's $3.90/share offer the previous month.</td>
</tr>
<tr>
<td style="width: 93.7143px;">19-Mar-20</td>
<td style="width: 610.286px;">
<p>VRL <a href="https://www.asx.com.au/asxpdf/20200319/pdf/44g6ftp3syn8tb.pdf" target="_blank" rel="noopener">said</a> they continue to assist PEP and BGH with their respective due diligence. Exposed to cinemas and theme parks amidst the virus - VLR was down 75% from its recent high at this time.</p>
</td>
</tr>
<tr>
<td style="width: 93.7143px;">18-May-20</td>
<td style="width: 610.286px;">
<a href="https://www.asx.com.au/asxpdf/20200518/pdf/44hx6rjz13vp2b.pdf" target="_blank" rel="noopener">Enters</a> into exclusive discussions with BGH.</td>
</tr>
<tr>
<td style="width: 93.7143px;">16-Jun - 5-Aug</td>
<td style="width: 610.286px;">Various announcements extending the exclusivity agreement with BGH</td>
</tr>
<tr>
<td style="width: 93.7143px;">6-Aug-20</td>
<td style="width: 610.286px;">
<a href="https://www.asx.com.au/asxpdf/20200807/pdf/44l8s8vg0qgjdy.pdf" target="_blank" rel="noopener">Entering</a> into an Implementation Agreement with BGH. </td>
</tr>
</tbody>
</table>
</div>
</div>
<div>
<div style="text-align: left;" class="content-caption">Source: ASX</div>
</div>
<div>
<div>The transaction is subject to limited conditions, including MACs. A Scheme meeting is expected to be held in November with implementation expected shortly thereafter.</div>
</div>
<div></div>
<div>But Mittleman Brothers, which has been increasing its shareholding, is expected to be a key antagonist to the revised terms.</div>
<div>
<div></div>
</div>
<div>
<p>As always, more below the fold.</p>
<hr>
<p><em>Prior insights on VRL discuss Pacific Equity Partners' non-binding Offer on the 19 December 2019 (<a href="https://skr.ma/JtNU1" target="_blank" rel="noopener">Village Roadshow: PEP Takes On Family Stoush</a>) and BGH Capital reloading in May of this year (<a href="https://skr.ma/MkzVq" target="_blank" rel="noopener">Village Roadshow: And ... Action! As BGH Returns</a>)</em></p>
</div>


Back on the 18 May, Aussie theme parks and movie theater operator Village Roadshow (VRL AU) entered into exclusive talks with BGH Capital after the PE outfit returned to the table with a revised, and lower Offer of A$2.10-$2.40/share. That upper end of the range was subject to the reopening of Sea World and Movie World, AND the majority of its cinemas. The high-end of the range represented a 36% premium to last close.
After various extensions to that exclusivity arrangement, VRL has now entered into an Implementation Agreement such that VRL will receive, under Structure A, up to A$2.45/share comprising A$2.20/share (A$2.10/share under Structure B) plus an additional A$0.25/share upon the re-opening of theme parks and cinemas, and Queensland's border being open to any person from NSW and Victoria. 


A Recent Timeline of Events







Date


Date in the Date



29-Aug-19

Release of  FY19  results. VRL reported an underlying profit of A$20.6mn in against a loss of $7.3mn the previous year. The company declared a return to dividends with a fully franked dividend of A$0.05/share. At the time of these full-year results, Burke said the key issues with John had largely been addressed.



19-Dec-19
Pacific Equity Partners tabled a non-binding Offer at A$3.90/share, a 21.9% premium to last close, by way of a Scheme. PEP has also agreed to buy a 19% stake (at $3.90/share) from VRC, which would indicate Burke and the brothers are on the same page.  
This is a call option on 19% of shares out - or Relevant Shares - between PEP and VRC. If an alternative offer is recommended by Village's board, the call option can be exercised. Voting remains with VRC until the Relevant Shares are exercised.



23-Jan-20
VRL received a non-binding, indicative offer from BGH Capital of $4.00/share, a 25% premium to last close, and a small premium to PEP's $3.90/share offer the previous month.


19-Mar-20

VRL said they continue to assist PEP and BGH with their respective due diligence. Exposed to cinemas and theme parks amidst the virus - VLR was down 75% from its recent high at this time.



18-May-20

Enters into exclusive discussions with BGH.


16-Jun - 5-Aug
Various announcements extending the exclusivity agreement with BGH


6-Aug-20

Entering into an Implementation Agreement with BGH. 






Source: ASX


The transaction is subject to limited conditions, including MACs. A Scheme meeting is expected to be held in November with implementation expected shortly thereafter.


But Mittleman Brothers, which has been increasing its shareholding, is expected to be a key antagonist to the revised terms.




As always, more below the fold.

Prior insights on VRL discuss Pacific Equity Partners' non-binding Offer on the 19 December 2019 (Village Roadshow: PEP Takes On Family Stoush) and BGH Capital reloading in May of this year (Village Roadshow: And ... Action! As BGH Returns)


Village Roadshow: BGH's Overly Caveated Offer

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

<p>On June 1st, <a href="https://www.smartkarma.com/entities/cineplex-inc" target="_blank" data-smartkarma-citation="entities:25216:1" rel="noopener">Cineplex Inc (CGX CN)</a> provided <a href="http://irfiles.cineplex.com/Attachments/NewItems/Cineplex%20ICA%20Extension%20Release%20June%201%20FINAL_20200601121829_0.pdf" target="_blank" rel="noopener">an update on the status of Investment Canada review</a> in connection to the Cineplex-Cineworld Deal: </p><blockquote>
<p>Cineworld and Cineplex are obligated to use reasonable best efforts to obtain the requisite ICA Approval so as to enable the closing of the Transaction to occur as soon as reasonably practicable (and in any event <strong>no later than June 30, 2020</strong> (the “Outside Date”)). Receipt of the ICA Approval is a condition to closing the Transaction.</p>
<p>The process to obtain the approvals under the Investment Canada Act is ongoing and the period for review of the Transaction has been extended to <strong>June 15, 2020</strong>.</p>
</blockquote><p>With less than a month to the <em>Outside Date</em> (30th June), the Deal remains conditional mainly on the ICA Approval, fulfilment of certain covenants in the arrangement agreement (<a href="https://www.sedar.com/CheckCode.do;jsessionid=0000d67H30V7XDVByUglDY_dfw9:188setvlh" target="_blank" rel="noopener">SEDAR link</a>), and Cineplex maintaining its debt level under C$725mn (the "<em>Debt Condition</em>"). </p><p>In my previous insight, <a href="https://www.smartkarma.com/insights/cineplex-is-this-deal-broken" target="_blank" data-smartkarma-citation="insights:37588" rel="noopener">Cineplex: Is This Deal Broken?</a>, I discussed several ways of how this deal could potentially collapse. </p><p>However, the Acquirer <a href="https://www.smartkarma.com/entities/cineworld-group-plc" target="_blank" data-smartkarma-citation="entities:21872:1" rel="noopener">Cineworld (CINE LN)</a> officially remains committed to completing this Deal at least as of a month ago. Here is what Cineplex's update on May 7th said:  </p><blockquote><p><strong> Cineworld has advised Cineplex that it remains committed</strong> to closing the Transaction on or prior to the outside date of June 30, 2020 (the “Outside Date”). However, there can be no assurance that the conditions to closing the Transaction will be satisfied by the Outside Date.</p></blockquote><p><strong>So can this Deal still go through? IF it does not go through what could possibly happen to Cineplex's share price? </strong></p><p>We provide our opinions to these questions below the fold. </p>

On June 1st, Cineplex Inc (CGX CN) provided an update on the status of Investment Canada review in connection to the Cineplex-Cineworld Deal: 
Cineworld and Cineplex are obligated to use reasonable best efforts to obtain the requisite ICA Approval so as to enable the closing of the Transaction to occur as soon as reasonably practicable (and in any event no later than June 30, 2020 (the “Outside Date”)). Receipt of the ICA Approval is a condition to closing the Transaction.
The process to obtain the approvals under the Investment Canada Act is ongoing and the period for review of the Transaction has been extended to June 15, 2020.
With less than a month to the Outside Date (30th June), the Deal remains conditional mainly on the ICA Approval, fulfilment of certain covenants in the arrangement agreement (SEDAR link), and Cineplex maintaining its debt level under C$725mn (the "Debt Condition"). In my previous insight, Cineplex: Is This Deal Broken?, I discussed several ways of how this deal could potentially collapse. However, the Acquirer Cineworld (CINE LN) officially remains committed to completing this Deal at least as of a month ago. Here is what Cineplex's update on May 7th said:   Cineworld has advised Cineplex that it remains committed to closing the Transaction on or prior to the outside date of June 30, 2020 (the “Outside Date”). However, there can be no assurance that the conditions to closing the Transaction will be satisfied by the Outside Date.So can this Deal still go through? IF it does not go through what could possibly happen to Cineplex's share price? We provide our opinions to these questions below the fold. 

Australia

Village Roadshow Limited operations include cinema exhibition, the distribution of film, DVD's and videos, and the production of motion pictures. The Company operates tourist theme parks and resorts along with operating FM radio stations.

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Village Roadshow (VRL AU)

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