AHL and Greater Union

Overview

This profile considers Australian-based Amalgamated Holdings Ltd (AHL).

It covers -

• introduction
• history
• holdings
• studies

Introduction

Amalgamated Holdings (AHL) is a hotel, cinema, film-lab and ski-resort operator.

It is best known for control of the Greater Union Organisation (GUO), a major Australian cinema chain. Prior to 2003, when AHL/GUO disposed of their stake, the group had been a dominant shareholder in entertainment group Village Roadshow since the 1950s.

The group is controlled by the Rydge family: Sir Norman Rydge was prominent as a company doctor and publisher last century.

The AHL corporate site is here.

History

AHL's history is similar to that of the US entertainment conglomerates and UK groups such as Granada and Carlton, traced back to the consolidation of local cinema companies during the first decades of last century.

Union Theatres Ltd was formed in 1913, was renamed Greater Union Theatres in 1937 and half-sold to Britain's Rank in 1945. (That 50% stake was repurchased by AHL in 1984).

AHL secured an interest in competitor Village Roadshow Group in the 1950's, subsequently increased to 33% in the 1960s before being sold down. Diversification in 1987 saw acquisition of hotelier Noahs Limited and subsequent development of the Rydges hotel chain. The Thredbo Ski Resort was acquired in 1987, the same year in which Rydges magazine was absorbed by Fairfax's Business Review Weekly.

AHL has continued to acquire businesses in the tourism sector, notably the Matilda and Sail Venture Cruises and the Featherdale Wildlife Park.

In late 2002 a Village, AHL and Hoyts joint venture acquired the Australian cinema advertising group Val Morgan. In February 2003 AHL announced that it had divested its shares in Village Roadshow to VRC Investment Co Pty Ltd for $46 million, representing "a loss on disposal" of $35.1m. The divested shares represented a 34.2% interest in Village's ordinary issued capital.

In 2003 AHL's Greater Union subsidiary subsequently moved to 50% ownership of the cinema joint venture with Warner Bros and Village Roadshow (319 screens in 29 multiplexes across Australia), buying half of the AOL Time Warner stake.

Holdings

The group has three operating subsidiaries: The Greater Union Organisation, Kosciusko Thredbo and Rydges Hotels & Resorts. Details are here.

Studies

There have been no major academic studies of AHL or the Rydge family.