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http://www.smh.com.au/articles/2004/10/18/1097951607144.html?oneclick=true
Macquarie buys AMF Bowling centres
Macquarie Leisure Trust Group says it has reached agreement to acquire the Australian portfolio of AMF Bowling centres for $67.4 million.
The portfolio includes 17 freehold and 23 leasehold bowling centres, as well as an additional three leasehold properties not considered core to AMF's bowling operations.
These properties are under negotiation for sale within the next 12 months, worth approximately $14 million.
The acquisition is conditional upon lessor consensus for certain centres, and MLE expects it to be complete by late November 2004.
MLE chairman Neil Balnaves said AMF was the clear leader in the Australian bowling industry, commanding a 25 per cent market share.
"The AMF portfolio of 40 bowling centres is a strong addition to MLE's existing portfolio of leading leisure-related assets," he said.
"Bowling is experiencing a strong resurgence and we are confident that MLE's operating expertise will deliver strong revenue and profit growth."
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Chief executive Greg Shaw said MLE had identified a number of opportunities to improve AMF's profitability, including operational restructuring, more aggressive marketing and cross-promotion through Dreamworld, one of MLE's key assets.
"The AMF portfolio comprises 17 continuing freehold sites in capital cities, with a freehold value of $34 million," Mr Shaw said.
"There is significant potential for redevelopment of these sites through the introduction of complementary facilities or through the complete redevelopment of selected sites."
Mr Shaw said the acquisition also provided important diversification for MLE, offering the group operations in all Australian states and the ACT.
It will represent about 25 per cent of MLE's total assets and provide 23 per cent of total operating earnings.
In order to fund the acquisition, MLE is undertaking an equity placement, fully underwritten by Macquarie Equity Capital Markets Ltd, with the new securities to rank equally with existing securities, eligible for the December 2004 half-yearly distribution.
This will increase MLE's gearing to 32 per cent, Mr Shaw said.
Based on a 20 per cent increase in MLE's stand-alone directors profit share (DPS) in the 2005 financial year, the acquisition is forecast to provide DPS accretion of 4.5 per cent on a pro-forma basis.
Mr Shaw said MLE was performing strongly and on-target to meet consensus expectations for 2005, with strong revenue growth in the September quarter.
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http://www.propertyreview.com.au/archives/2004/20102004/headline/20102004009.html
MLE raises $34.5m for AMF Bowling Centres
Macquarie Leisure Trust announced that it has raised $34.5 million to partly fund the acquisition of the AMF Bowling Centres.
MLE conducted an institutional equity placement on 18 October 2004, priced at $1.49 per security and a total of 23.17 million new securities will be issued.
The new securities are expected to commence trading on the ASX on Thursday November 4. The new securities will rank equally with existing securities and will be eligible for the December 2004 half yearly distribution.
“We are happy with the high level of interest shown by new and existing investors. We are very pleased that the offer was strongly supported by a range of small cap fund managers and property securities fund managers,” MLE chief executive officer Greg Shaw said.
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http://home.businesswire.com/portal...iew&newsId=20041019005750&newsLang=en
AMF Signs Agreement to Sell Its Bowling Centers in Australia
RICHMOND, Va.--(BUSINESS WIRE)--Oct. 19, 2004--AMF Bowling Worldwide, Inc. ("AMF") today announced that it has signed a definitive agreement to sell its 45 operating bowling centers in Australia to Macquarie Leisure Operations Limited ("MLE") for approximately US$49.3 million, subject to certain adjustments to be made at closing. The sale will also include the real estate associated with one closed bowling center. The transaction is expected to close by the end of November, 2004, subject to certain closing conditions. Following consummation of the sale, AMF will have exited all bowling center operations in Australia.
"The decision to sell our Australian centers is consistent with the sale of our U.K. centers that we announced a few weeks ago," said Fred Hipp, AMF Bowling Worldwide's President and CEO. "Strategically, we want to bring as much focus as possible to the management of our core U.S. center and bowling products businesses."
AMF Bowling Worldwide, Inc. was advised on the transaction by J.P. Morgan.
AMF Bowling Worldwide Inc. remains the world's largest owner and operator of bowling centers and is also a leader in the manufacturing and marketing of bowling and billiards products. Additional information about AMF is available on the Internet at
www.amf.com or
www.amfcenters.com
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http://dailytelegraph.news.com.au/story.jsp?sectionid=1265&storyid=2107378
MacBank goes bowling
By IAN LOVETT
October 19, 2004
MACQUARIE Leisure Trust Group is betting $67.4 million that it can make a souffle rise twice.
Macquarie Bank's leisure arm is buying 40 tenpin bowling centres from AMF Bowling Centres.
Tenpin bowling was bigger than Britney Spears 40 years ago as families queued to take the family bowling.
But its popularity was fleeting and as time passed the centres were converted into factories, offices and takeaways.
MLE chief Greg Shaw believes with its deep pockets and its marketing savvy, bowling can thrive again.
"We believe we can make bowling relevant to families once again.
"The same people that now go to our Dreamworld theme park are our target market for AMF bowling centres."
And if that fails, Mr Shaw said AMF's portfolio 17 freehold sites in capital cities across Australia were worth $34 million.
"There is significant potential for redevelopment of these sites through the introduction of complementary facilities (including childcare and function centres) or through the complete redevelopment of selected sites," he said.
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http://www.theage.com.au/articles/2004/10/18/1097951629525.html?oneclick=true
Bowling it into tenpin top spot
Tenpin bowling has earned cult status from shambolic film characters such as The Dude in the Coen Brothers' The Big Lebowski.
But Macquarie Leisure Trust has banked on its mainstream appeal, agreeing to buy the Australian portfolio of worldwide tenpin bowling group AMF Bowling Centres for $67.4 million.
Macquarie Leisure, which owns boating marinas and Queensland's Dreamworld, will become the largest owner of bowling alleys in Australia.
The AMF business will represent about 25 per cent of Macquarie Leisure's total assets, and provide 23 per cent of the trust's total operating earnings.
The deal also gives Macquarie Leisure a larger presence in Victoria, with 12 of the 40 centres in outer-suburban Melbourne, the highest number of any state.
The Victorian portfolio includes freehold properties in Box Hill, Frankston, Northcote and Sunshine.
Other leasehold properties are in Boronia, Chadstone, Dandenong, Forest Hill, Highpoint, Keon Park, Knox and Moorabbin.
The portfolio also includes 11 alleys in NSW and the ACT, seven in Queensland, and 10 across Western and South Australia and Tasmania.
Three other NSW sites are being sold as non-core assets for around $14 million.
Macquarie Leisure bought the portfolio from Chicago-based equity firm Code Hennessy & Simmons, which bought the multinational AMF company in February this year.
Chief executive Greg Shaw said that while Macquarie Leisure was not releasing figures, he believed tenpin bowling was undergoing a strong resurgence.
Macquarie Leisure plans to cross-promote Dreamworld through the centres to families and children, Mr Shaw said.
"It gives us a lot of opportunities," he said. "What we have done in the Dreamworld business is segment our market and develop specific strategies for specific age groups. It will add real value to AMF."
Tenpin bowling was popular in Australia when first introduced in the 1960s, holding steady until the late 1990s.
Numbers then tumbled due to competition from poker machines and smoking bans.
However, AMF chief executive Peter Finlayson said the group had worked hard since to rebuild support for the sport. It has re-established the sport's competitive base - bowling leagues - which now include 40,000 players nationally.
Always popular with families, the sport had also gained newer bowlers aged in their 30s, he said.
A number of hip, inner-city bowling venues have also opened in Melbourne, but Mr Shaw said Macquarie Leisure had no plans to follow suit.
Analysts said the timing of the deal was good for Macquarie Leisure, with its unit price fairly high.
Shares halted from trade at $1.55 on Friday.
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http://www.heraldsun.news.com.au/common/story_page/0,5478,11113345%5E664,00.html
Macquarie backs bowling
Scott Murdoch
19oct04
BOWLING is back, according to the Macquarie Leisure Trust which has bought 40 bowling alleys across Australia as part of an aggressive expansion strategy.
The group announced yesterday it would pay $67.4 million for the centres owned by AMF, seven of which are located in Brisbane, to add to its holding of Dreamworld and boating marinas.
The acquisition will be partially funded through a fully-underwritten equity placement and is reliant on lessor consent from some of the centres.
The deal is expected to be completed by November and of the 40 properties, 17 are freehold while 23 are leasehold centres.
The freehold component has a $34 million value and the transaction will increase MLE's overall size by another quarter. It will represent, once approved, 23 per cent of the trust's earnings.
MLE chief executive Greg Shaw said AMF held an estimated 25 per cent of the national bowling market, an activity Macquarie believes is on its way back.
MLE will also receive a $14 million payment from the sale of three non-core freehold AMF properties which are now for sale.
The sale was a tender process negotiated by JP Morgan.
"We have established experience in that leisure space and one thing that we have done really effectively in Dreamworld is specific product offerings for a targeted market," Mr Shaw said.
"One thing with this type of business is they have a relatively fixed cost structure which allows incremental revenue to flow to the bottom line."
Mr Shaw said MLE planned cross-promotional offers between Dreamworld and the AMF centres, particularly aimed at the younger end of the market.
Almost 8.5 per cent of AMF's revenue comes from children's birthday parties, an income stream from a sector which Mr Shaw said was lucrative for MLE.
"The bowling industry has been through change but it's been growing in the family market," he said.
"We have had a focus on children at Dreamworld with Nickelodeon and we have been growing the children's attendances by 30 per cent to Dreamworld. There are lots of opportunities for cross-promotion."
AMF will increase MLE's normalised gearing to 32 per cent and has been estimated to be 4.5 per cent distribution per share accretive in the 2005 financial year.
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