Village Roadshow sells stake in Singapore cinema business for $165m
The deal is expected to be completed before the end of the year
Village Roadshow has agreed to sell its stake in Singapore cinema business Golden Village to partner Orange Sky Golden Harvest Entertainment Holdings for about $165 million, after failing to wrap up a deal to sell to Singapore filmmaker mm2 Asia Ltd.
The Australian company (VRL) said it expected to realise a net profit of about $150 million from the sale to Orange Sky, which owns the other 50% interest in Golden Village.
The deal is expected to be completed before the end of the year, and the proceeds will initially be used to reduce Village Roadshow’s debt levels, the company said.
In mid-June, Village Roadshow announced it had signed an agreement to sell the stake to mm2 Asia for about $175 million, but in August it said certain conditions hadn’t yet been met despite both companies remaining in talks regarding options to push ahead with a deal.
