USA/China: Zhonghong Group Acquires Equity Interest in SeaWorld
This past Friday, SeaWorld Entertainment, Inc. officially announced that Zhonghong Holding, a wholly owned subsidiary of Zhonghong Zhuoye Group Co., Ltd. (Zhonghong Group) – a diversified holding company focused on strategic growth opportunities in the leisure, tourism and culture industries – will acquire an approx. 21 percent equity interest in SeaWorld. The shares are sold by US investment trust Blackstone to the price of 23 US Dollar (approx. 21 Euros) per share. Furthermore, SeaWorld and Zhonghong Holding have also agreed to advisory services and support agreements under which SeaWorld will advise the company exclusively on the concept development and design of theme parks, water parks, and family entertainment centers for the regions of China, Taiwan, Hong Kong and Macau.
“Zhonghong Group is making a significant, long-term investment in SeaWorld, reflecting their appreciation of the strength of our brand, our potential to grow the company and a shared commitment to protect wildlife and the environment. Zhonghong Group has a strong track record of performance in the leisure and travel industries, and a solid management team with valuable experience in theme parks, family entertainment and real estate development in Asia,” said Joel Manby, President and CEO of SeaWorld Entertainment, Inc. Yoshikazu Maruyama, President of Zhonghong Group’s American operation, also looks forward to the partnership: “We are delighted to engage with SeaWorld to bring this iconic, world-class family entertainment brand to China. SeaWorld’s commitment to inspiring guests to protect animals and our oceans is increasingly relevant to people all around the world. Zhonghong Group hopes to contribute our experience and resources in global tourism and project development to enhance long-term value to all of SeaWorld’s shareholders. We look forward to a highly collaborative relationship and to serve as a key partner to grow its business and further its mission,” he added.
The transaction is expected to close in the second quarter of 2017. Upon that time, SeaWorld’s Board will welcome Yoshikazu Maruyama and Yongli Wang (Chief Strategy Officer of Zhonghong Group) as new members. Following the closing contemplated by the agreements, Blackstone and its affiliates will no longer hold any interests in SeaWorld. (eap)
