After months of trying to fight off its advances, Australia-based Sydney Attractions Group has finally been forced to recommend its shareholders accept the takeover offer by Village Roadshow.

Although the board had continually insisted that the AUS$141m (£65.3m, US$127m, 87.5m euro) offer undervalued the company - whose attractions include Sydney Aquarium, Sydney Wildlife World and Sydney Tower – it was forced to back down after two major shareholders said they were accepting the deal, resulting in Village Roadshow achieving voting control.

In a statement, the board of Sydney Attractions Group said it now believed that shareholders were likely to be better off accepting the offer of AUS$6.50 per share than remaining minority shareholders.

Chairman Bill Wright added: “Although the board continues to believe that the offer substantially undervalues the company, we can no longer be confident that there will be an opportunity to realise this value. We are leaving the company well positioned with strong earnings and cash flow that are continuing to grow.”

Upon formally obtaining 50 per cent of the company’s shares, Village Roadshow is to appoint three of its executives to the board: chief operating officer Peter Foo; chief executive of Village Roadshow Theme Parks Division, John Menzies; and chief marketing officer Tim Carroll.

Village Roadshow’s chief executive, Graham Burke, said the new board of directors would undertake a review of the business before ‘determining the appropriate course’.

Sydney Attractions Group’s half year results to 31 December 2007 showed a drop in visitors of 6 per cent at Sydney Aquarium, 5 per cent at Sydney Tower and 17 per cent at Skywalk.