Cedar Honest says it is reviewing a takeover be offering from SeaWorld that is reportedly price $3.4 billion

Guests at Knott’s Berry Farm experience the HangTime rollercoaster all over it is first day of public operation in Buena Park on Friday, Would possibly 11, 2018.

Jeff Gritchen | Orange County Sign in | Getty Pictures

Cedar Honest stated Tuesday that it’s reviewing an unsolicited proposal it gained from SeaWorld Leisure to shop for out the corporate.

Bloomberg, which first reported the inside track, stated the be offering is price $3.4 billion. The scoop despatched stocks of the theme park proprietor up 10%, sooner than buying and selling used to be halted. When buying and selling resumed, Cedar Honest’s inventory rose greater than 13% and hit a 52-week top of $56.69.

In a press unencumber, Cedar Honest did not reveal main points of SeaWorld’s proposal. The corporate stated it’s consulting with prison and fiscal advisors concerning the be offering.

Cedar Honest is likely one of the greatest regional theme park operators on the earth, with a marketplace cap of $2.82 billion. For comparability, SeaWorld has a marketplace cap of $4.6 billion.

Cedar Honest’s homes come with conventional amusement parks like California Nice The united states, Cedar Level, Carowinds and Kings Dominion, in addition to water parks, like Schlitterbahn, and two sports activities complexes. The corporate additionally operates 11 lodges.

Each SeaWorld and Cedar Honest, like others within the amusements trade, had been hit exhausting all over the pandemic.

In 2019, Cedar Honest’s inventory averaged round $50 apiece, however its percentage worth crumpled to $13 in March 2020, when all the trade used to be compelled to shutter places. Stocks have since rebounded as parks have reopened and Cedar Honest has reported robust attendance and buyer spending.

SeaWorld, which additionally owns Busch Gardens, made a bid of round $60 in keeping with percentage for Cedar Honest, Bloomberg reported, bringing up other folks acquainted with the subject.

In a similar way, SeaWorld used to be averaging $30 to $35 in keeping with percentage in 2019, however noticed its percentage worth dip to $8 to $10 all over the early days of the pandemic. On Tuesday, the corporate’s stocks had been up about 4%, or about $62 in keeping with percentage.