Ann: Ardent Leisure enters into partnership transaction, page-25

I think people were reading it as a valuation of US$424m but not taking into account that this was related to EV and not equity value.

From my calcs (and I assume that they will have drawn down much of the debt now) that the equity portion of Main Event in AUD is around $220m, still that values Dreamworld at nothing (may well be the case I suppose being as its not yet recovered to a profitable level).

I like the announcement, the initial investment is higher than the annualised H1 2020 Proforma EBITDA at 9 times value so they clearly see high value in Main Event (H1 2020 proforma EBITDA was A$16.8m, doubled to annualise and then multiplied by 9 is A$302.4m). At that same level the investment would have only been somewhere around US$50m but they have invested US$80m so must be confident in a rebound.

The one bit though that worries me a touch is that this is stated as a preferred equity investment, which suggests that they will be preferred shareholders hence over and above ALG's investment in Main Event. There is certainly some risk that comes with that.

I've been a quiet holder for a while but this announcement resparked my interest.