Australian theme park operator Village Roadshow (VRL) has made an official bid for Sydney Attractions Group (SAG), which operates five attractions across the city.

In a statement, VRL said it was offering AUS6.01 in cash for each SAG share, valuing the operator at AUS197.7m.

VRL already holds a 19.96 per cent share in SAG and the company’s chief executive, Graham Burke, said the intended offer provides SAG shareholders with the opportunity to realise full and fair value for their shares.

Burke said: “SAG is at a critical point given the ongoing difficulties and heightened competitive pressures it faces. As theme park and attractions operators, we are more confident of being able to deliver the required result with direct control rather than as a passive investor.”

“If we acquire SAG, we will undertake a detailed review of SAG’s operations to identify initiatives to improve performance.

“We believe that some of these initiatives may be more challenging for SAQ to implement itself, given its high gearing and therefore more constrained financial capacity to invest in the business.”

According to financial figures, SAG’s net profit has declined from AUS$6.2m in 2002 to AUS$1.2m this year, while net debt has increased from AUS$6.2m to AUS$67.1m during the same period.

SAG currently operates Sydney Aquarium, Sydney Tower Oztrek and Skywalk, Oceanworld Manly and the new Wildlife World.