Village Roadshow Ltd (ASX:VRL) shares skidded into a trading halt today pending a material transaction.
Founded in the 1950s, Village Roadshow is one of Australia’s leading mass media and entertainment companies, with leading positions in Australian cinema, theme parks, film production and distribution. The company is most well-known for its ownership of Village Cinemas, Warners Bros. Movie World and Wet’n’Wild.
Over the past five years, Village Roadshow shares have struggled to keep pace with the broader ASX 200 (INDEXASX: XJO) as the film and entertainment industries come to grips with meaningful change, such as the arrival of Netflix and other online streaming and production businesses.
In a statement to the ASX today, Village requested a trading halt before it announces a “potential corporate control transaction”.
In other words, a takeover or acquisition could be on the cards. Either for the company itself, as the takeover target, or if it hopes to make a transaction of its own.
The video below explains trading halts:
Village is expected to release an update to shareholders before Monday (December 23rd). Until then, it’s likely much of what will be said in media columns, such as this one, will be speculation.
Shareholders will be hoping for an early Christmas present!