No one else interested in buying Cedar Fair

SANDUSKY Cedar Fair tried wooing other companies, but in the end Apollo Global Management remained t
Sandusky Register Staff
Mar 7, 2010

 

SANDUSKY

Cedar Fair tried wooing other companies, but in the end Apollo Global Management remained the only suitor with serious intentions.

Cedar Fair's 40-day "go shop" period allowing it to seek other offers besides Apollo's ended at midnight Monday.

The amusement park chain then announced Tuesday nobody else was interested in buying it.

Click HERE for continuing coverage of the Cedar Fair deal.

Cedar Fair contacted 32 companies, including six in the same business and 26 financial companies similar to Apollo.

Although six asked for confidential information and signed nondisclosure agreements, none of the six made an offer.

That leaves Apollo the only potential buyer. Last month it made a $2.4 billion deal that includes offering unitholders $11.50 a share.

"We move forward with Apollo," said Stacy Frole, director of investor relations for Cedar Fair.

Cedar Fair's unit price closed at $12.65 Tuesday.

The largest unit holder, Q Funding of Fort Worth, Texas, announced Friday it plans to oppose the merger agreement. The $11.50 offer is a significant discount to the current price and doesn't reflect "the true value of the company," Q Funding officials said in a statement.

On Monday, Q Funding revealed in an SEC filing that its portion of the outstanding units has grown to 12 percent, giving it a large voice in the fate of the merger agreement. The merger must be approved by votes representing two-thirds of the approximately 55.2 million outstanding units.

No date has been set for the vote yet, but it will be included when Cedar Fair mails out a final proxy statement to investors. That statement is expected to be mailed in February and also will be publicly posted on the Internet.

An Apollo spokeswoman had no comment Tuesday when asked if the company plans to put an improved offer on the table.

Q Funding's PR firm didn't return a phone call requesting comment. Geoffrey Raynor, the Fort Worth investment banker who controls Q Funding, has not responded to requests for an interview.