Echo Entertainment Group enters agreement to sell Jupiters Townsville
Echo Entertainment Group Limited (“Echo”) announced today that it has entered into an agreement to sell its Jupiters Townsville complex to Colonial Leisure Group (“CLG”) for $70 million. CLG is a wholly owned private Australian company, with operations in Victoria, Western Australia, Queensland and the UK. In Australia, CLG operates 15 hotels in Victoria and Western Australia, a brewery in Margaret River, Western Australia, and a portfolio of assets in Northern Queensland.
The transaction is for the sale of all the shares and units in Breakwater Island Limited and Breakwater Island Trust respectively (the “Transaction”). Echo expects to book a pre-tax profit on the sale of approximately $8m after transaction costs. The purchase price of $70 million represents a multiple of 10 times FY13 actual EBITDA including corporate cost allocations for the property or 8 times FY13 EBITDA excluding all corporate cost allocations.
The Transaction is subject to required regulatory approvals being obtained. The agreement is not subject to finance or CLG or Echo shareholder approval.
Echo Managing Director & CEO John Redmond said: “Recent performance of Jupiters Townsville has been positive, however given the scale of operations and the size of the local market, we saw more limited expansion opportunities, and therefore strategic fit, with the group’s other assets. We remain committed to and excited about investment in South-East Queensland and believe the company’s capital will be better deployed as we advance our plans for development of both Jupiters Gold Coast and Treasury Brisbane into large-scale integrated resorts.”
The sale of Jupiters Townsville followed a competitive sale process advised by ANZ Corporate Advisory.
A copy of CLG’s media release with more information on the group is attached.
For further information contact:
Media: Peter Brookes, Citadel Communications 02 9290 3033
Financial Analysts: Harry Theodore, Head of Strategy, Investor Relations and Group Reporting, 02 9657 8040