Blackstone Group plans to hive Universal Orlando stake to NBC Universal
17 Mar 2011
Private equity firm Blackstone Group is looking to sell its 50 per cent stake in Universal Orlando, the two Florida-based theme parks back to NBC Universal.
The surprise move comes after the New York-based PE firm had last year acquired 10 amusement theme parks operated by Busch Entertainment, which include SeaWorld, Adventure Island, Discovery Cove, Aquatica, Adventure Island in Florida and Sea World in Texas and California, for $2.7 billion.
Analysts had speculated that Blackstone would buy NBC Universal's 50 per cent stake in Universal Orlando and consolidate its entertainment assets along with its majority stake in Merlin Entertainments Group, which owns Legoland in Carlsbad, California.
Early this week, Blackstone's revealed its interest in selling Universal Orlando in a regulatory filing with the US Securities and Exchange Commission made by Universal City Development Partners Ltd, a holding company formed to oversee the park.
Blackstone did reveal the asking price in the filing, but NBC Universal, which was acquired in January 2011 by Comcast Corp from General Electric for around $13.45 billion, has until 12 June to accept the offer and Blackstone would have 270 days to sell its stake in Universal Orlando to other interested party if NBC Universal declined to buy its stake.
Blackstone had acquired the 50 per cent stake in Universal Orlando in 2000 from London-based gaming operator Rank Group for $2.07 billion in a deal that included an initial cash payment of $275 million and performance-based payouts.
