SeaWorld news for Tuesday about the theme park company moving shares has SEAS stock soaring higher.
To start off with, SeaWorld (NYSE:SEAS) says that it is buying back 5.6 million shares of SEAS stock. The company is specifically buying these shares back from an affiliate of Pacific Alliance Group.
According to the SeaWorld news release, this is part of the company’s efforts to show investors that it is willing to use excess capital to return value to shareholders. The company also notes that it shows the company is a worthwhile investment opportunity.
There’s more SeaWorld news that goes along with its buyback plans. The company also says that investor Hill Path Capital LP is increasing its stake in the company. This will have it buying an additional 13.2 million shares of SEAS stock.
That new investment from Hill Path Capital LP will have it holding a 34.5% stake in SEAS stock. The deal also includes an agreement from the investor. This will have it using any of its votes beyond 24.9% of its stake in line with the Board’s or other investors’ choices.
The SeaWorld news also has the company adding to its Board of Directors. Hill Path Capital LP will be adding three new members to the Board. This includes Hill Path Managing Partner Scott Ross. Hill Path Partner James Chambers is also joining the Board. The final new member of the Board will be an independent Director chosen by Hill Path. SEAS will expand its Board to accommodate the new members.
SEAS stock was up 17% as of noon Tuesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.