Merlin Entertainments, the company who owns a raft of popular tourist attractions including Alton Towers, announced it’s closing in on plans to launch its long-awaited stock market debut and offer shares to the public –with a sizeable shareholder perk.
The company, the world’s second largest visitor attraction operator behind Walt Disney, has offered discounted tickets, at 30pc, to any of its attractions for investors who are willing to buy £1,000 worth of shares.
Merlin, which is co-owned by private equity titans Blackstone and CVC Capital Partners operates 99 attractions in 22 countries which attracted more than 54m visitors in 2012, generating total revenue of £1.07bn and underlying earnings before interest, tax, depreciation and amortisation of £346m. Its other well-known sites include Legoland, Chessington, Thorpe Park and Madame Tussauds.
The share offer will see 20pc of the company pass to public investors.
Sir John Sunderland, the company’s non-executive chairman, said “Over the past decade Merlin has become a truly impressive business, driven by a committed and dedicated management team and backed by supportive shareholders. I have been impressed by the significant growth that Merlin has delivered as a private company. But there is more to come and I believe Merlin has a very promising future as a publicly listed company.”
Nick Varney, Merlin chief executive, said the share sale would provide the company with “the platform for our next stage of development and allow us to plan for the longer term”.
“Merlin Entertainments comes to the market with a consistent record of strong growth in both revenues and profits and bright prospects for the future,” he said.
The decision to offer the shareholder perk marks a trend to attract investors with a perk. Once popular, shareholder perks had been on the decline for the last decade. But in recent years perks have stages something of a comeback with companies offering “loyalty bonds” direct. Customers become investors, usually in return for income paid in cash as well as some other perks. Marks & Spencer sends vouchers to shareholders each year, while British Airways gives its shareholders a 10pc discount on flights.
Investors who buy £1,000 worth of shares in Merlin will be given a 30pc discount on either two adult Merlin Annual Passes, which cost £119 each, or one family Merlin Annual Pass, priced from £356 for a family of four.
Merlin is due to unveil a formal intention to float in London before the end of the month amid a rush by private firms to capitalise on buoyant stock markets.
The success of Royal Mail’s initial public offering – shares have surged close to 50 per cent in value from their float price – and a temporary thawing in relations in Washington to avert a US debt breach have given added impetus to a host of firms looking to float, propelling the London market towards its best year since the financial crisis.
Sofa chain DFS, online househunting site Zoopla, takeaway site Just Eat, cinema Everyman, and foreign exchange shop Travelex are just some of the firms lining up behind Merlin with plans to float.
Merlin is expected to be valued at £4bn.
