Cedar Fair Comments on Merger Transaction
23 January 2010 - 7:51AM
PR Newswire (US)
SANDUSKY, Ohio, Jan. 22 /PRNewswire-FirstCall/ -- Cedar Fair, L.P.
(NYSE: FUN), a leader in regional amusement parks, water parks and
active entertainment, today made the following statement in
response to the announcement issued today by Q Funding III, L.P.:
The independent members of the Cedar Fair Board of Directors
undertook a lengthy and thorough process to evaluate all options to
address the Company's capital structure and best serve the
interests of our unitholders. After carefully weighing numerous
alternatives and the outlook for the business, the Board
determined, and continues to believe, that the proposed acquisition
of Cedar Fair is the best option to maximize value for all
unitholders. This transaction was thoroughly negotiated and
includes protections for unitholders, including a go-shop process
in which the Company has been actively soliciting alternative
proposals. The offer price of $11.50 in cash per Cedar Fair limited
partnership unit represents a 43% premium over Cedar Fair's volume
weighted average closing unit price over the 30 days prior to the
transaction announcement and a 28% premium over the closing unit
price on December 15, 2009. This valuation also exceeds those of
the recent comparable transactions in our industry. We always
welcome the views of our unitholders with the shared goal of
enhancing value. Q Funding has not contacted us about the merger or
the Company's prospects. We look forward to having the opportunity
to speak with our unitholders regarding the merits of this
transaction. We urge all unitholders to carefully review the
Company's definitive proxy materials when mailed before making a
decision about how to vote. About Cedar Fair Cedar Fair is a
publicly traded partnership headquartered in Sandusky, Ohio, and
one of the largest regional amusement-resort operators in the
world. The Company owns and operates 11 amusement parks, six
outdoor water parks, one indoor water park and five hotels.
Amusement parks in the Company's northern region include two in
Ohio: Cedar Point, consistently voted "Best Amusement Park in the
World" in Amusement Today polls and Kings Island; as well as
Canada's Wonderland, near Toronto; Dorney Park, PA; Valleyfair, MN;
and Michigan's Adventure, MI. In the southern region are Kings
Dominion, VA; Carowinds, NC; and Worlds of Fun, MO. Western parks
in California include: Knott's Berry Farm; California's Great
America; and Gilroy Gardens, which is managed under contract.
Forward-Looking Statements Some of the statements contained in this
news release (including information included or incorporated by
reference herein) may constitute "forward-looking statements"
within the meaning of the safe harbor provisions of the United
States Private Securities Litigation Reform Act of 1995, including
statements as to the Company's expectations, beliefs and strategies
regarding the future. These forward-looking statements may involve
risks and uncertainties that are difficult to predict, may be
beyond the Company's control and could cause actual results to
differ materially from those described in such statements. Although
the Company believes that the expectations reflected in such
forward-looking statements are reasonable, we can give no assurance
that such expectations will prove to be correct. Important factors
could adversely affect the Company's future financial performance
and cause actual results to differ materially from the Company's
expectations, including uncertainties associated with the proposed
sale of the Company to an affiliate of Apollo Global Management,
the anticipated timing of filings and approvals relating to the
transaction, the expected timing of completion of the transaction,
the ability of third parties to fulfill their obligations relating
to the proposed transaction, the ability of the parties to satisfy
the conditions to closing of the merger agreement to complete the
transaction and the risk factors discussed from time to time by the
Company in reports filed with the Securities and Exchange
Commission (the "SEC"). Additional information on risk factors that
may affect the business and financial results of the Company can be
found in the Company's Annual Report on Form 10-K and in the
filings of the Company made from time to time with the SEC. The
Company undertakes no obligation to correct or update any
forward-looking statements, whether as a result of new information,
future events or otherwise. Additional Information About This
Transaction This news release may be deemed to be solicitation
material in respect of the proposed transaction. In connection with
the proposed transaction, on January 8, 2010 the Company filed with
the SEC a preliminary proxy statement on Schedule 14A. In addition,
the Company will file with, or furnish, to the SEC all relevant
materials, including a definitive proxy statement on Schedule 14A.
BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SECURITY HOLDERS
OF THE COMPANY ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH
OR FURNISHED TO THE SEC, INCLUDING THE COMPANY'S PRELIMINARY PROXY
STATEMENT AND, WHEN AVAILABLE, THE DEFINITIVE PROXY STATEMENT,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
TRANSACTION. The definitive proxy statement (when available) will
be mailed to unitholders of the Company. Investors and security
holders will be able to obtain a copy of the preliminary proxy
statement, definitive proxy statement (when available) and other
documents filed by the Company free of charge from the SEC's
website, http://www.sec.gov/. The Company's unitholders will also
be able to obtain, without charge, a copy of the preliminary proxy
statement, definitive proxy statement (when available) and other
relevant documents by directing a request by mail or telephone to
Investor Relations, Cedar Fair, L.P., One Cedar Point Dr.,
Sandusky, OH 44870, telephone: (419) 627-2233, or from the
Company's website, http://www.cedarfair.com/ or by contacting
MacKenzie Partners, Inc., by toll-free telephone at 800-322-2885 or
by e-mail at . The Company and its directors and executive officers
and certain other members of its management and employees may be
deemed to participate in the solicitation of proxies in respect of
the proposed transaction. Additional information regarding the
interests of such potential participants is included in the
preliminary proxy statement and will be included in the definitive
proxy statement when it becomes available. This news release and
prior news releases are available online at
http://www.cedarfair.com/. Contacts Stacy Frole Cedar Fair
419-627-2227 Dan Katcher / Jeremy Jacobs Joele Frank, Wilkinson
Brimmer Katcher 212-355-4449 Dan Burch / Laurie Connell MacKenzie
Partners 800-322-2885 DATASOURCE: Cedar Fair CONTACT: Stacy Frole
of Cedar Fair, +1-419-627-2227; or Dan Katcher or Jeremy Jacobs,
both of Joele Frank, Wilkinson Brimmer Katcher, +1-212-355-4449; or
Dan Burch or Laurie Connell, both of MacKenzie Partners,
+1-800-322-2885 Web Site: http://www.cedarfair.com/
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