Merlin is on track for a stock market float

Source: Daily Mail, LondonOct.迷你倉 22--The management of Alton Towers-owner Merlin Entertainments could sell as much as pounds sterling 200m of their own personal holdings when the theme park operator floats on the London Stock Exchange next month.The private equity-backed company finally announced plans to list following an aborted attempt in the wake of the financial crisis in 2010.It had originally flirted with floating in New York because analysts on Wall Street are more familiar with listed theme park giants such as Disney.The revamped plan, which values the business at around pounds sterling 3bn, would see about 20pc of the firm pass into public hands.Around pounds sterling 600m would be raised of which pounds sterling 200m will be used to pay down the pounds sterling 1.2bn debt pile and pounds sterling 400m will go into the pockets of private equity owners Blackstone, CVC, Kirkbi, the family trust behind the Lego dynasty and management.The City has previously taken a cautious view of private equity firms floating off assets at optimum times, particularly those loaded with heavy debt piles. Investors have previously had their fingers burned in the wake of the public listings of Debenhams and care home group Southern Cross.A spokesman said: 'Merlin has a track record of strong cash generation and, consequently, is not coming to the market with high levels of debt. The overall level of net debt will also be further reduced by the primary proceeds of the offer.'Merlin is the world's second largest theme park operator and owns Thorpe Park, Chessington World of Adventures, Madame Tussads, Legoland and SeaLife. It has 99 sites in 22 countries and employs 22,000 staff, who handled 54m 自存倉isitors last year bringing in revenues of pounds sterling 1bn. Management own a stake thought to be worth pounds sterling 200m.While the senior executives own the lion's share and are thought to be selling a minority holding on float, the 2,000 other employees will also be able to sell.The plan to come to market comes at a time of improved confidence in the City which has seen Foxtons and Royal Mail make successful debuts.Merlin, which has been under private equity control for 14 years, is cash generative.Chief executive Nick Varney said: 'We have successfully followed a clear and proven strategy to build a high-growth international family entertainment business, built on strong brands and a portfolio of attractions balanced by geographies, products and demographics.'The IPO will provide Merlin with the platform for our next stage of development and allow us to plan for the longer term.'The float will also see a return to the offering of shareholders perks. Merlin expects 10pc to 15pc of the registered shares will go to retail investors.It is offering buyers who invest at least pounds sterling 1,000 a 30pc discount on an annual pass to Merlin sites for two adults or a family. This works out at a yield of around 10pc for a family of four who have invested pounds sterling 1,000.Chairman Sir John Sunderland, who used to chair Dairy Milk-maker Cadbury, announced the line-up of non-executive directors.These include former Thomson travel boss Charles Gurassa and Fru Hazlitt, previous chief executive of Capital Radio GCap Media.Copyright: ___ (c)2013 Daily Mail (London, ) Visit the Daily Mail (London, ) at .dailymail.co.uk/home/index.html Distributed by MCT Information Services迷你倉