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Ardent Leisure (ASX: ALG) is part of the currency hedge of income from the main event – The Market Herald

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  • Ardent Leisure (ALG) has entered into foreign exchange hedging (FX) to provide confidence in sales revenue of $ 485 million (A $ 682 million)
  • Proceeds include the sale of Dave & Buster’s Entertainment’s Ardent’s Main Event
  • ALG notes that its obligations under FX Hedges to deliver revenue in dollars arise only after the completion of the sale of the Main Event or after the completion of the change of control over Ardent Leisure itself
  • Shares of ALG traded 0.79 percent down $ 1.26

Ardent Leisure (ALG) has entered into foreign exchange hedging (FX) to provide confidence in sales revenue from the recently announced sale agreement.

On April 6, the company signed a merger agreement and plan to sell its business at Dave & Buster’s Entertainment’s major events. 487 million US dollars (686.2 million Australian dollars).

Currency hedging provides confidence in over $ 485 million in sales revenue.

Subject to the completion of the sale by April 2023, these currency hedges will yield a profit of at least 664.5 million Australian dollars.

The company noted that its obligations under FX Hedges to deliver revenue in dollars arise only after the completion of the sale of the Main Event or after the completion of the change of control over Ardent Leisure itself.

The sale will require shareholder approval at an extraordinary general meeting later this year, but the board unanimously agreed to the deal.

Under the proposed sale, Ardent Leisure will receive about $ 487 million in cash proceeds, most of which will be returned to Ardent Leisure shareholders at 90 cents per share.

The Main Event business includes 50 entertainment centers located throughout the United States.

If the deal is approved, the deal will turn Ardent, who owns Dreamworld on the Gold Coast and other challenging theme parks, into a business only in Australia.

Shares of ALG traded up 0.79 percent on red trades at $ 1.26 at 15:52 AEST.

https://themarketherald.com.au/ardent-leisure-asxalg-enters-into-fx-hedges-over-main-event-proceeds-2022-05-06/

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