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read moreMerlin Entertainments, the world’s second largest attractions operator, is reportedly considering a bid for SeaWorld Parks and Entertainment.
A range of industry reports on the potential deal has seen shares in the Orlando, USA-based SeaWorld rise 4.6% this week while shares in Merlin have risen 1.8%.
Bloomberg quoted “people familiar with the matter”, who suggested that the UK-based Merlin had made a bid to buy part of the US company - although which part remains unknown.
The report said SeaWorld has been working with advisers to explore options including a sale, with the company also receiving interest from other possible suitors.
However, Merlin’s corporate policy is contrary to some of SeaWorld’s main features, with the company opposing the keeping of large marine mammals, dolphins and whales in captivity.
This is not the first time Merlin has had reported interest in SeaWorld properties, with rumours of a Busch Gardens purchase appearing earlier this year.
Speaking in August during an earnings call, Merlin’s Chief Financial Officer Anne-Francoise Nesmes was asked if the operator would be interested in a possible takeover of the SeaWorld-owned properties.
Nesmes stated “it takes two parties to do a deal (and) we do not know what SeaWorld’s intentions are. But we do believe that those assets are interesting and we could certainly do a lot with them particularly around accommodation.”
Merlin, which has a market value estimated in US$6.1 billion, owns more than 100 attractions worldwide, which includes the world’s largest aquarium chain – Sea Life.
In addition to its SeaWorld parks, SeaWorld Parks and Entertainment also owns its two Busch Gardens theme parks in Williamsburg and Tampa in the USA; the Sesame Place attraction near Philadelphia, USA; five waterparks across the USA and Discovery Cove in Orlando, Florida.
It is developing theme park in Abu Dhabi and a second Sesame Place theme park at a location yet to be confirmed.
Earlier this year the Zhonghong Zhuoye Group became SeaWorld’s largest shareholder, with the Chinese investor purchasing a 21% stake in the company. As a result, several Zhonghong executives have since been added to SeaWorld’s management structure - most recently seeing Yoshikazu Maruyama named its new chair - with plans to develop future themed entertainment destinations, including theme parks, waterparks and family entertainment centres, in China, Taiwan, Hong Kong and Macau.
SeaWorld has seen its share value drop 25% in 2017 as Chief Executive Joel Manby tries to turn around the company’s public image in the wake of the ongoing backlash from the 2013 documentary Blackfish, where it was alleged to be mistreating its captive killer whales (known as orcas in North America).
Merlin is also understood to be looking to secure a NSW Government tender to run the Sydney Harbour Bridge's tourism climb business.
Gold Coast marine and theme park Sea World is a separate venture.
Image: The Manta ride at SeaWorld Orlando (top) and Discovery Cove, Orlando (below).
15th September 2017 - SYDNEY HARBOUR BRIDGE CLIMBING RIGHTS TENDER ATTRACTS GLOBAL INTEREST
8th September 2017 - VILLAGE ROADSHOW LOOKS TO SELL GOLD COAST THEME PARK LAND
29th June 2017 - SEAWORLD ENTERTAINMENT RELEASES INAUGURAL CORPORATE RESPONSIBILITY REPORT
26th April 2017 - ZHONGHONG GROUP BUYS 21% STAKE IN SEAWORLD WITH PLANS TO BRING BRAND TO CHINA
30th January 2017 - SEAWORLD TO OPEN ON ABU DHABI’S YAS ISLAND
27th April 2016 - MERLIN ENTERTAINMENTS MARKS FIVE YEARS OF OPERATIONS IN AUSTRALASIA
22nd March 2016 - SEAWORLD USA TO MOVE AWAY FROM KILLER WHALE SHOWS
20th November 2015 - IAAPA RECOGNISES ASIAN ATTRACTIONS FOR EXCELLENCE IN HUMAN RESOURCES, ENTERTAINMENT AND MARKETING
7th January 2015 - ANIMAL RIGHTS CAMPAIGNERS TARGET SEA WORLD DOLPHINS
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