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Stock Market Floatation

A

Anonymous

So as we know sometime in the future Merlin or Blackstone are considering floating Merlin in the stock market and selling.. BUT what will happen to the group? Is there some agreement that the group cant be split because of annual passes? Or will the attractions just become 'individual'?

It's a rarther confusing topic really as its abit of a mind bender as potentially anything could happen!
 
Re: Floating The Group

Exactly potentially anything could happen, they could remain as one single concern which has many attractions or they could split the group up. Merlin Annual Passes wont affect the decision, they will likely write into a sale clause that the purchasing agent of each individual group honors the existing annual passes but cease to sell anymore.
 
Re: Floating The Group

It's also in some light a scary thought as this could potentialy break the brands up and leave the attractions fighting for survival.

For the theme parks if they do potentially get broken up, I can see an American theme park company coming in and taking over Alton, as for Chessington if there is any hope some local business people will take over potentially with it just becoming a Zoo and the rides sold or moved on.
 
Re: Floating The Group

I think money-grabbing and cost-cutting will go up tenfold when you have shareholders to please.

I can't see them breaking the group up.

Would anyone here buy shares in Merlin?
 
Re: Floating The Group

Floating the group won't affect the attractions ownership - merlin will continue to own everything it already does, shareholders buy shares in merlin.

It'll could affect what happens to create profitability etc, but they won't split up the group as that makes zero sense and wouldn't gain the most value from the business. Most value is by having them all together (otherwise they'dve already split them).
 
Re: Floating The Group

thefatone said:
Floating the group won't affect the attractions ownership - merlin will continue to own everything it already does, shareholders buy shares in merlin.
Click to expand...

It's not uncommon to split a group up then float to maximise a profit. I don't think that will happen with Merlin because if that was the case Blackstone would have bound their other theme parks with Merlin. It's not an unreasonable suggestion though.
 
Re: Floating The Group

Isn't Alton Towers still owned by someone else and leased to Merlin? If Merlin float this could protect the fro being split or it could mean the new owners cancel the contract.
 
Re: Floating The Group

Blaze said:
Isn't Alton Towers still owned by someone else and leased to Merlin? If Merlin float this could protect the fro being split or it could mean the new owners cancel the contract.
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Nick Leslau/Prestbury Holdings owns the grounds, But it is leased to Merlin.
 
Re: Floating The Group

So does this Nick Lesalu get a say in anything thats added into the park such as ride developments and attractions?
Surley the lease/contract must be long term because of the hotels and investment into the park on permanent structures?
 
Re: Floating The Group

Zak said:
So does this Nick Lesalu get a say in anything thats added into the park such as ride developments and attractions?
Surley the lease/contract must be long term because of the hotels and investment into the park on permanent structures?
Click to expand...
He doesn't and it is.
 
Re: Floating The Group

Zak said:
So does this Nick Lesalu get a say in anything thats added into the park such as ride developments and attractions?
Surley the lease/contract must be long term because of the hotels and investment into the park on permanent structures?
Click to expand...

It was a 99 year lease initially, with the option to extend :)
 
Re: Floating The Group

I thought it was a 35 year lease. as quoted in "Prestbury seals deal for attractions" in The Times march 2011.

There is also comments that he owns Thorpe Park, Warwick Castle and Madame Tussauds. but i cant find hard data on this.
 
Re: Floating The Group

delta79 said:
I thought it was a 35 year lease. as quoted in "Prestbury seals deal for attractions" in The Times march 2011.

There is also comments that he owns Thorpe Park, Warwick Castle and Madame Tussauds. but i cant find hard data on this.
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I know wikipedia isn't the most reliable of sources but:

"On 17 July 2007, as part of the financing for the Tussauds deal, Merlin sold the freeholds of Alton Towers, Thorpe Park, Warwick Castle and Madame Tussauds to private investor Nick Leslau and his investment firm Prestbury. Although the attractions are owned by Leslau, they continue to be operated by Merlin, leasing each back on a renewable 35-year lease. Chessington World of Adventures (the fifth Tussaud's attraction) was not included in the deal."

http://en.wikipedia.org/wiki/Merlin_Entertainments
 
I do not believe this to be a good thing for the attractions in question, a point I have raised before.

Floatation is a great way to bring in quick revenue, and that 3bn marker, you get a sense of how Blackstone have thrown money into Merlin parks, to create an impression of high quality attractions resulting in a higher floatation value.

It is clear how they have the money they have, this is very clever investment indeed! Maximising their position, to gain better value and stronger purchase power (Tesco example), giving rise to actual value being that far higher than actual monetary investment!

However if this goes through, our beloved parks will be even more at the behest of investors/shareholders, and what becomes important will without doubt change. Financial rewards, are the main reason people buy shares in companies. If the stock market falters, investors loose faith and sell up fast, there are so many more potential downfalls for the parks in this situation - that results in the success of the business, not only being purely based upon its performance alone.

I also believe they will use a fair chunk of this income, to continue aggressive expansion, raising the share price further, resulting in further confidence from the market to bring these shares in larger numbers into portfolios. However at this point, expectations of returns will be greater, and again you are even more at the mercy of the general economy than when you are insulated company away from it.

How many privately owned Premier League clubs, by genuinely wealthy owners, are floated? Generally they are taken off the market with compulsory buy back schemes, such as Aston Villa was - ask yourself why? Surely if the stockmarket was the best way to increase the clubs value, when you already have wealth behind you, these would still be on the market?

Man Utd.... laden with Glazier debt, some of their other investments get rocky, what happens? They float again - now it can make sense in some cases to go through this process, especially something like Man Utd with their global reach.

What about the others though? The reason they are taken off is because owners want control, not to have to explain themselves or indeed, pay out, to shareholders - and to shield it from other extraneous factors.

The Stock Market is a posh way to gamble. It has its uses, but the logic other than out and out money making/aggressive expansion, makes little sense to me.

I hope it doesn't happen.
 
There's a new, quite bizarre clause in the 2013 Merlin Annual Pass T&Cs which adds further weight to the IPO rumours. (emphasis mine)

The Merlin Entertainments Group also reserves the right to use Annual Pass holder’s details
for marketing purposes for its products and events or in relation to any initial public offering
(IPO) announcement made by the Merlin Entertainments Group unless that Annual Pass
holder has opted out of receiving such information.
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http://merlinannualpass.co.uk/misc/MAP-terms-2013.pdf
 
That'll presumably just be numbers. "Hey look, this many people have a MAP!" Or even, "Hey look, this many twenty to thirty-year-olds have a MAP, buy our shares!"
 
Thanks for the link Wilsy.

The Merlin Annual Pass is actually being used as a showcase trophy as flotation approaches. That is why they have been driving sales of passes in the last couple of years. Stating they have 200,000 or whatever passholders is an attractive selling point to any would be investor.

The pass disappearing is not something you should be concerned about.
 
Tom said:
The pass disappearing is not something you should be concerned about.
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No, but price rises etc should be once it has served its marketing/business purpose.
 
And if a float in America is now on the cards, then just when you thought things couldn't get any worse.

If that happens, will the last person to leave the park please turn off the lights.
 
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