August 26, 2005
Oklahoma City, Ok -- Six Flags placed itself on the auction block yesterday by announcing that it will seek proposals from third parties regarding a possible sale of the entire company or possibly parts of it.
The process initiated by Six Flags Board of Directors is in response to shareholder Daniel Snyder's announcement that he will attempt through his Red Zone LLC, investment firm, to acquire control of the company.
Snyder has been unhappy with the direction the current management is taking with Six Flags. Despite reporting its first quarterly profit in several years, Snyder is still not convinced that management is doing enough to reverse the slump.
The process initiated by the Board yesterday is designed to result in the receipt of full and fair value by all Six Flags shareholders for all of their shares. As a result, Six Flags intends to pursue a prompt and orderly auction process.
Six Flags' Board is inviting Red Zone LLC, the investment firm managed and controlled by Snyder, to participate in the process should he have a serious interest in pursuing an acquisition of the entire company.
In response to Snyder's recent announcement Six Flags Board unanimously determined to oppose Red Zone's attempt to gain effective control of the company through its previously announced intention to initiate a consent solicitation and partial tender offer for Six Flags stock. If Red Zone commences a consent solicitation, the Board will urge Six Flags stockholders not to sign any consent form they may receive from Red Zone and will request that stockholders revoke any consent they may give.
"The Board believes that initiating a sale process at this time is the best way to deliver full and fair value to all Six Flags stockholders, particularly in light of the recent strong, broad-based performance of Six Flags' parks and the proposed actions by Red Zone, which is seeking to acquire effective control of the Company without providing value to all stockholders," said Michael Gellert, presiding independent director of Six Flags' Board of Directors. "Whether or not Red Zone participates in our auction process, we certainly hope it will not take any action which would impede our ability to maximize value for all stockholders."
"Our management team continues to implement a comprehensive strategy for improving performance based on investment in new attractions, enhanced guest services, and a well-received marketing campaign," said Kieran Burke, chairman and CEO of Six Flags. "We have seen strong evidence of the soundness of this strategy with sharply improved performance this year, evidenced by our improved revenues and attendance during the second quarter, and year to date park revenues pacing ahead of prior year at virtually all of our parks. We will remain focused on continuing this momentum as we conduct the sale process and head into the last part of our peak summer season."
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