Village Roadshow Limited (ASX: VRL) announced that it has entered an agreement to sell its wholly owned Wet ‘n’ Wild Water Park located in Western Sydney to Parques Reunidos, for an amount of $40 million plus a variable compensation that will depend on the Park’s revenue performance up to 30 June 2020. The transaction is expected to complete in the first quarter of FY2019, subject to customary conditions precedent.
Parques Reunidos is one of the world’s leading leisure park operators based in Spain with a portfolio of over 60 entertainment assets around the world. This investment provides Parques Reunidos an entry into the Australian market and with its extensive experience of operating 20 water parks around the world. Parques will be able to add value and enhance Wet ‘n’ Wild Sydney’s performance over the coming years.
The sale will result in a pre-tax loss of approximately $25 million, which will be disclosed as a material item in the FY2018 results. Two main divisions of VRL that have continued to face challenging working conditions are Theme park and Cinema Exhibition and the overall VRL results are now expected to be below those set out in previous VRL announcements made in January and February 2018 for the year ended 30 June 2018 (FY18). VRL stock was edging low with this update on July 02, 2018.
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