Shares in Village Roadshow Ltd (ASX:VRL) closed almost 15 per cent stronger on Monday after announcing it had accepted Southern Cross Media Group’s (ASX:SXL) offer for its 52.5 per cent stake in radio broadcaster Austereo.
The theme park operator will receive initial proceeds of around $362 million from the sale which will likely result in a pre-tax profit of around $205 million.
Village Roadshow intends to put the funds towards pursuing growth in China, investing in its film and music division and distributing $1 per share to shareholders in July.
At the beginning of the month the company sold its Sydney Attractions Group for $115 million to England’s Merlin Entertainment Group.
Yesterday shares in Southern Cross Media Group fell 1.49 per cent to close at $1.65. Shares in Village Roadshow climbed 14.94 per cent to close at $4.00.
In the first six months of the 2011 financial year, Village Roadshow generated a net profit of $48 million.
