Village Roadshow loses more than $69M
VILLAGE Roadshow has had more than $69 million wiped off its market capitalisation following resumption of trading yesterday.
The stock plunged 14.45 per cent, or 31.5¢, to close at $1.865 yesterday.
Today it is down a further 6.16 per cent, or 11.5¢, to $1.75, meaning a total of $69.6 million has been wiped off its value.
Village's market capitalisation stood at $352.85 million before trading commenced yesterday.
The sharp fall followed the company emerging from a trading halt on Thursday after launching a $51 million capital raising to cut debt.
Village, which operates Sea World and Movie World among other theme parks on the Gold Coast, said on Thursday that the institutional part of the offer had raised $35.7 million, with shareholders chipping in $20.9 million.
The retail offer, which will open next Tuesday, aims to raise a further $15.7 million.
Village has said the $51 million will be used - together with the proceeds of the sale of Wet'n'Wild Sydney - to reduce the company's mountain of debt, which stands at $425 million.
Analysts, including Citi and Macquarie, have neutral ratings in place for Village stock, citing concerns over the ongoing negative publicity from the tragedy at Dreamworld in October, 2016.
In a trading update earlier this week Village said it expects to book total full-year impairments of $166 million due to factors including lower earnings at its Gold Coast parks and an accounting hit from the sale and leaseback of land at Oxenford.
Village has flagged $9 million of restructuring costs and expects a full-year loss, excluding significant items, of between $6 million and $10 million.
Both Ardent and Village have struggled in the wake of the tragedy at Dreamworld in October, 2016, which claimed four lives.