Fund Raising & FY18 trading update: Village Roadshow Ltd (ASX: VRL) announced to raise fund of approximately $51 million through an entitlement offer. The company is offering price of $1.65 per New Share, which represents a 21.1% discount to TERP of $2.09, and a 24.3% discount to VRL’s closing price on 6th July 2018. The company will invite eligible shareholders to subscribe for 5 New Shares for every 26 existing fully paid ordinary share in VRL. Its major shareholder, Village Roadshow Corporation Pty Ltd (“VRC”) has supported this entitlement offer under the institutional component of the offer, and the three VRC principals have committed to underwrite the full proportion of VRC’s pro rata entitlement of approximately $21 million. Moreover, for FY 18, VRL expects FY18 EBITDA to be in the range of $88 –$92 million. VRL expects an adjusted FY18 EBITDA to be in the range of $98 –$102 million. FY18 Attributable Net Profit After Tax is expected to be in the range of $(10) –$(6) million, which is in line with guidance previously provided in April 2018. FY18 capital expenditure is expected to be approximately $87 million. Further, it is expected that a non-cash asset impairment of approximately $166 million (pre-tax) will be reflected in the company’s FY18 results. The company also expects to incur restructuring costs of approximately $9 million in FY18, which is primarily related to one-off costs associated with initiatives implemented under the OneCo and operational cost saving programs. Meanwhile, VRL stock has fallen 31.45% in three months as on July 9, 2018.
Entitlement Offer Timetable (Source: Company Reports)
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. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the 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.