$140m takeover offer for ski resort owner

On Monday 19 December 2011, 16:26 EST

The owner of Victorian ski resorts Hotham and Falls Creek is set to be bought for $140 million by European amusement parks owner Merlin Entertainments Group.
Living and Leisure Australia Group (LLA) has recommended its securityholders accept an off-market takeover bid from Merlin's Australian subsidiary.
Owned by private investment and equity firms, Merlin is the world's second-largest operator of visitor attractions, with assets including Madame Tussauds, Legoland and the London Eye.
Its Australian assets include Sydney Aquarium, Oceanworld Manly and the Sydney Tower Skywalk.
LLA operates the Melbourne Aquarium, Underwater World on Queensland's Sunshine Coast and the Otway Fly Treetops Adventure in Victoria, in addition to the Victorian ski resorts.
Merlin chief executive Nick Varney said the deal would increase the company's exposure to Asia and Australia.
"Completion of this deal, together with our existing ongoing development, would represent an important step in our growth strategy for the region," Mr Varney said.
Merlin has offered 5.14 cents per LLA stapled security, a 157 per cent premium to their last closing price before the bid was made.
LLA securities gained 1.3 cents or 36.11 per cent, to end at 4.9 cents on Monday.
The offer has been supported by LLA's three largest securityholders, who collectively own about 87.87 per cent of issued securities.
The deal remains subject to regulatory approval.

Sunday, 18 December 2011