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Cedar Honest (NYSE:FUN) and Six Flags Leisure Company (NYSE:SIX) introduced on Thursday that they’ve entered right into a deal to merge. The mixed theme park firm will professional forma enterprise worth of roughly $8B primarily based on each corporations’ debt and fairness values as of October 31.
Below the phrases of the merger settlement, Cedar Honest unitholders will obtain one share of frequent inventory within the new mixed firm for every unit owned, and Six Flags shareholders will obtain 0.5800 shares of frequent inventory within the new mixed firm for every share owned. Following the shut of the transaction, Cedar Honest unitholders will personal roughly 51.2%, and Six Flags shareholders will personal roughly 48.8%, of the mixed firm’s totally diluted share capital on a professional forma foundation.
The merger of equals is predicted to result in an enhanced general monetary profile with robust money circulation technology to speed up investments in parks, driving elevated ranges of demand and in-park worth and spending.
Following closing of the transaction, the newly fashioned board of administrators of the mixed firm will encompass 12 administrators, six from the Cedar Honest (FUN) board and 6 from the Six Flags Leisure (SIX) board.
Trying forward, the SIX-FUN mixture is predicted to create a number one amusement park operator within the extremely aggressive leisure area with an expanded and diversified footprint, a extra strong working mannequin and a robust income and money circulation technology profile.
Upon closing of the transaction, the mixed firm will function underneath the identify Six Flags and commerce underneath the ticker image FUN on the NYSE and can be structured as a C Company. The mixed firm can be headquartered in Charlotte, North Carolina, and can keep important finance and administrative operations in Sandusky, Ohio. The merger is predicted to shut within the first half of 2024, following receipt of Six Flags shareholder approval, regulatory approvals, and satisfaction of customary closing situations.
Six Flags (SIX) rose 2.29% in premarket buying and selling after gaining 5.33% on Wednesday. Cedar Honest (FUN) gained 3.27% after leaping 5.66% on Wednesday. The mega-merger within the theme park sector can be of curiosity to Disney (DIS) and SeaWorld Leisure (NYSE:SEAS).