SeaWorld is enormously confident that travel will make a significant rebound soon because why would they offer more than $3 billion for Cedar Fair if it didn't see the leisure and entertainment sector rapidly approaching pre-Covid metrics.
SeaWorld Entertainment Inc has offered to buy amusement park operator Cedar Fair LP for $3.4 billion, according to a source familiar with the matter.
SeaWorld has made a bid of about $60 per share in cash, the source said, representing a premium of about 21% to Cedar Fair’s Monday close.
Cedar Fair confirmed the offer in a statement, adding its board will review the proposal. SeaWorld declined to comment.
Shares of Cedar Fair rose as much as 12.5% before being halted, while those of SeaWorld were up about 5%.
The deal comes as the leisure and entertainment sector slowly gets back on its feet after the Covid-19 pandemic and subsequent lockdowns hammered the industry for over a year.
Sandusky, Ohio-based Cedar Fair has a market cap of about $2.83 billion, according to Refinitiv IBES data.
Cedar Fair rejected a takeover offer of $4 billion, or about $70 per share, from larger peer Six Flags Entertainment Corp in 2019, saying the bid was too low.
Bloomberg first reported SeaWorld’s offer earlier on Tuesday.
(Reporting by Deborah Sophia in Bengaluru and Greg Roumeliotis; Editing by Krishna Chandra Eluri and Anil D’Silva)
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Photo credit: An image from a Cedar Point amusement park in Ohio Jeremy Thompson / Wikimedia Commons