Blackstone to Sell Off SEAS Shares

[Shane]

Private-equity firm Blackstone Group L.P. BX plans to trim its ownership stake in SeaWorld Entertainment Inc. SEAS by 15 million shares, following the theme-park operator's public listing in April.

The new stock sale would cut Blackstone's ownership in the company from 63% to 46%, not including an underwriter option, resulting in SeaWorld no longer being a "controlled company" under New York Stock Exchange governing standards. This change will trigger a requirement that SeaWorld appoint a majority of independent directors within a year after it is no longer a "controlled company," among other requirements.

SeaWorld also said it is in discussions with Blackstone to potentially buy back 1.5 million of Blackstone's shares in the company.

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[Nora]

There are no words for a response; just tears.

 

[Jrbgwfan06]

Why did I have a feeling this would happen?

I can't take the bad news anymore.

 

[Party Rocker]

First Blackstone was an evil bloodsucking bug and now you guys are going to miss it like it was some savior.

Honestly, I think this might be good for SeaWorld. They can finally regain their own company and get things straight. My only concern is they might trip and fall when gettings set to the way they want them.

 

[Jonathan S]

Hopefully Cedar Fair and/or Six Flags doesn't decide to buy shares.... Besides that, I'm cool with Blackstone going away.

 

[Zachary]

Honestly, I think this might be good for SeaWorld. They can finally regain their own company and get things straight. My only concern is they might trip and fall when gettings set to the way they want them.

They're selling the shares publicly. It is mentioned in the article that SEAS is looking to potentially buy back additional stock from Blackstone on top of the stock Blackstone is putting up for public sale, but that's a separate thing entirely.

 

[Parkgoer]

People are not looking at how large of a cash grab that this will be nor how it will inflate the stock price.

 

[mwhinva]

Well, with Blackstone giving up majority ownership, it will mean a shift in the makeup of the Board of Directors and other changes. On the positive, it gives Sea World more independence in running the company and taking it in the direction it wants to go in. The negative is that more outside stockholders to force the chain to make them money whatever way they can. There might be a slight risk of a "rouge" board member doing something stupid.

I think the overall leadership at Sea World is stable enough to minimize the bad stuff from happening. Just going to have to have some faith in them.