Six Flags sells SFED to WB

[GRIM.657]

there is a rumor that both Six flags and Cedar Fair are selling their europian<--(spelling) parks... if it is true, why do you think it is happening[?]

>[}:)]<<GRIM>>[}:)]<

actualy the Six Flags group is selling all its european parks, and Cedar Fair is buying another Six Flags park (cant remember off the top of my head) Probaly because the parks are not getting enough revenue. Either way sellling all its European parks for $200 mill imo is cheap

In addition, Six Flags announced that it had reached an agreement in principle to sell its European division to a private investment firm for a purchase price of U.S. $200 million. The transaction will not include the Company's interests in Warner Bros. Movie World Madrid.

Mr. Burke stated, "While we continue to believe that there are potential internal and external growth opportunities in Europe, the sale of our European operations will enable us to focus our management and capital resources more completely on our North American operations.

"While we will incur a book loss in the first quarter of 2004 on the sale of these assets of approximately $70 million in the case of Cleveland and approximately $220 million in the case of Europe, these transactions are very positive for us," continued Mr. Burke. "Taken together, they will enable us to accelerate our planned de-leveraging. We expect to utilize the proceeds of the sales primarily to reduce outstanding indebtedness, as well as to fund investments in our other parks. We do not expect any additional park dispositions to occur.

Source: NYSE http://www.nyse.com/marketinfo/p1020656 ... Fsym%3Dpks

Looks like it is no rumor. Don't know yet if this is good or bad. One thing is for sure, SF is making some sudden moves. Let's hope WB will take the theming and overall park quality to a new level...