Movie Gallery (MOVI) launches formal tender for VHQ Entertainment

Includes: BBI, MVGRQ
by: David Strahlberg

One week after signing an agreement to acquire Canadian video rental chain VHQ Entertainment, Movie Gallery (MOVI) formally launched its tender offer.

MOVI is offering to pay about $17 million for the 61 store Canadian video rental chain, including the assumption of about $3 million in debt.  The offer represents a 53% premium to VHQ's share price price in the preceeding 60- days.  VHQ shareholders have until April 18, 2005 to accept the bid.