Village Roadshow Ltd announced fund raising & FY18 trading update

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.

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Entitlement Offer Timetable (Source: Company Reports)


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