Merlin Entertainments PLC (LON:MERL) is to sell its Australian ski resorts, Hotham and Falls Creek in the state of Victoria, to US mountain resort firm Vail Resorts Inc (NYSE:MTN).
The FTSE 250 owner of LEGOLAND and Madame Tussauds said the £95mln (A$174mln) deal was expected to close by June 2019, with the proceeds to be used for “general corporate purposes”.
READ: Merlin Entertainments skids lower as UBS cuts its rating, target and estimates on concerns over Midway customer review data
Nick Varney, Merlin’s chief executive, said the sale would allow the firm to focus on its “core business of location-based entertainment, specifically theme parks and Midway attractions”.
The shift in focus follows concerns from analysts around customer review data for Merlin’s Midway attractions, which include sites such as the London Dungeon and the London Eye.
In January, UBS downgraded the firm to ‘sell’ from ‘neutral’, citing customer review data from the Midway attractions that showed “a continued decline in average reviews … including among the key attractions”.
In mid-afternoon trading Friday, Merlin shares were down 0.7% at 363p.
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