Kind of. They entered into two agreements. One involved them buying shares back from PAG and the other involved another investment firm increasing it's share holdings by buying more shares from PAG. Both actions together led to increased trading this morning which raised the share price.
Very much agreed on many points. I am a share holder in SEAS (To give an idea, I have enough to get invited to the yearly shareholder outing like Disney Apple and IBM, but not enough to actually matter in anything); so what my investment banker told me about this transaction and it's meaning for SEAS. Them and Hill Path buying shares off PAG took the shares that were devalued by an unstable company who pulled down the value (because of the uncertainty of what could happen with it), and gave control of it to much more stable companies with a bigger hand in the plan (meaning a lowered chance of those shares being sold off making the remaining shares more valuable).Kind of. They entered into two agreements. One involved them buying shares back from PAG and the other involved another investment firm increasing it's share holdings by buying more shares from PAG. Both actions together led to increased trading this morning which raised the share price.
If you do the math on the price SEAS paid on the shares they paid approximately $26.79 per share. That's about 50¢ less than what they were trading at when the markets closed on Friday. So this isn't SEAS artificially inflating stock by overpaying.
Basically this is the market reacting to SEAS and Hill Path capital buying shares. Generally I view it as a good thing when a company wants to increase it's investment.
This is not the first time they have bought back shares... They have long had a buyback program in place. The SEC rules say that they have to announce their buybacks and so this is that announcement.
You mean the second paragraph?Probably the bigger news wasn't quoted in @Zimmy's article: that hillpath will increase their stake in SeaWorld by a huge margin:
/PRNewswire/ -- SeaWorld Entertainment, Inc. (NYSE: SEAS) ("SeaWorld" or the "Company"), a leading theme park and entertainment company, announced today that...www.prnewswire.com
SeaWorld doesn't own any of it's own shares though.Yes, I am aware of that, I was speculating. I actually suspect they are trying to gain a significant % of the stock to prevent a hostile buy out and to calm shareholder fears. Their debt load is still unhealthy.
My comments about the leverage buy out were an aparently bad, refrence to the RJR-Nabisco disaster. (hence the reference to KKR and Amex).