China's Zhonghong To Buy 21% Stake In SeaWorld From Blackstone At $23/Shr

(RTTNews) - SeaWorld Entertainment, Inc. (SEAS), a theme park and entertainment company, announced Friday that a unit of Zhonghong Zhuoye Group Co., Ltd. will acquire an approximately 21% equity interest in SeaWorld from certain funds affiliated with Blackstone at a price of $23.00 per share.

Upon receipt of regulatory approvals and satisfaction of other customary closing conditions, the transaction is expected to close in the second quarter of 2017.

SeaWorld has also agreed to advise Zhonghong Holding Co., Ltd., an affiliate of Zhonghong Group, exclusively on the concept development and design of theme parks, water parks, and family entertainment centers to be developed and operated by Zhonghong Holding, including exclusive rights in China, Taiwan, Hong Kong and Macau.

Zhonghong Group has entered into a stockholders agreement with SeaWorld and, effective upon closing of the transaction, SeaWorld will increase the size of its Board to 11. Zhonghong Group executives Yoshikazu Maruyama, President of American operation, and Yongli Wang, Chief Strategy Officer, will join the SeaWorld Board providing long-term shareholder perspectives and substantive expertise in global themed entertainment and business development in China.

The agreement also contains certain restrictions on Zhonghong Group's ability to sell its interest in SeaWorld for a period of two years, limitations on its ability to acquire more than 24.9% of SeaWorld's outstanding shares without the approval of the independent directors of SeaWorld's Board and other customary restrictions including voting and standstill to protect SeaWorld and all of its stockholders.

Following the closing contemplated by the agreements, Blackstone and its affiliates will no longer hold any interests in SeaWorld or have seats on SeaWorld's Board.

Joel Manby, President and CEO of SeaWorld, said, "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."