Merlin Entertainments buyout completed

Discussion in 'European Parks and Attractions' started by Lurker, 23rd May 2019.

  1. TakeYourMedicine

    TakeYourMedicine TowersStreet Member

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    Does make you wonder though, if Lego's owners wanted to get the Legolands back under their control, this first step would be the best way to do it.
     
  2. Islander

    Islander TowersStreet Member

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    Although you're right there is a distinction, it's got to be remembered that Kirkbi is heavily Lego-centric as a company. It's definitely their primary concern. And that's not a bad thing for the RTPs and Midways - applying the Lego values to them will do the world of good.
     
  3. imanautie

    imanautie TowersStreet Member

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    True but if the main focus behind this deal was Legoland then surely Lego group would be taking control so they can have even tighter integration.

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  4. Islander

    Islander TowersStreet Member

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    The LEGO Group isn't an investment company though, it wouldn't be in their interest to buy out a company.
     
  5. imanautie

    imanautie TowersStreet Member

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    Ordinarily it wouldn't but they could easily justify it for LEGOLAND.

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  6. Islander

    Islander TowersStreet Member

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    I don't think so, not after the financial troubles they ran into that forced them to sell in the first place.
     
  7. Thameslink Rail

    Thameslink Rail TowersStreet Member

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    My only worry now is that it is July and Alton Towers, Thorpe Park, Chessington and Legoland haven't announced anything new yet for next year. (Please tell me if I have missed any announcements for new rides).
     
  8. imanautie

    imanautie TowersStreet Member

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    Well Legoland have the VIP program coming soon which I suppose counts as something new.
    I'm curious if kirkbi will have as much focus on paid extras as public Merlin.

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  9. D4n

    D4n TowersStreet Member

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    :tearsofjoy::tearsofjoy::tearsofjoy:

    Even Merlin wouldn't sink as low as advertising that new "attraction"
     
  10. Tim

    Tim TowersStreet Member

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    That will be a park level concern and not related to this deal. As far as existing attractions are concerned it is business as usual until the deal goes ahead.
     
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  11. Jb85

    Jb85 TowersStreet Member

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    Could Merlin squeeze the budget further though?
     
  12. Tim

    Tim TowersStreet Member

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    Are we talking operational budget or CapEx? Operational budgets won't be set until closer to the next season (From my understanding). CapEx is what they need to approve in advance and was what I was referring to above. Any investments being made for the next year should already have been signed off or in the process of being signed off. Assuming the takeover isn't until the end of the year they won't be waiting for it to happen.
     
  13. Jb85

    Jb85 TowersStreet Member

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    I meant capes. They may well have signed them off but surely could scrap them? There will be penalties with suppliers but that would probably still be cheaper than the capex outlay.

    Edit- I mean from a cash perspective- obviously any capex investment would boost the balance sheet and be depreciated over a number of years
     
  14. Rick

    Rick TowersStreet Member

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    I think they will be more pragmatic about money if the buyout is going to go through at the agreed sum. Capex budget for rides and attractions that will be open this time next year is very unlikely to be touched.
     
  15. Matt N

    Matt N TowersStreet Member

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    Have we heard any additional news? For example, has the buyout actually been completed yet?
     
  16. Islander

    Islander TowersStreet Member

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    No new news - completion of the deal isn't likely to be before very late 2019 to early 2020.
     
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  17. Matt N

    Matt N TowersStreet Member

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    Ah right. Thanks for the clarification @Islander!
     
  18. grrrr

    grrrr TowersStreet Member

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  19. Dave

    Dave TS Founding Member

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    It’s more a commentary on the wider economy as Merlin have been able to get aggressive terms (in their favour) for debt they are taking on to complete the buy-out.

    I’m no economist but it looks like bond investors are willing to take risks, bonds are seen as relatively safe investments so my guess is if investors are taking higher risks on safe investments then it suggests the economy is making them nervous about traditionally higher risk investments. Economists seem to use debt trends as an indicator of strengths or weaknesses in global economy.
     
    Last edited: 22nd Oct 2019
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  20. Bert2theSpark

    Bert2theSpark TowersStreet Member

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    Bump!

    Buyout set to complete on the 4th November.

     
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