Private equity investment firm Apollo Global Management has pulled the plug on its planned $650m takeover of North American theme park operator Cedar Fair, following opposition to the agreed price by Cedar shareholders.
The leveraged $11.50-a-share offer, which was made public by Apollo in December, failed to secure the needed 66 per cent majority, and after months of subsequent negotiations the two companies have agreed to dump the deal.
Earlier this year, the Cedar Fair board of directors wrote to unitholders in an effort to push the deal forward.
As previously reported by InterPark during that crucial stage in negotiations, Cedar chairman, president and CEO, Richard Kinzel, said: "In order to complete the merger, we need your support. Failure to vote will have the same effect as voting against the merger. Therefore, your vote is important, no matter how many or how few units you own."
Now, following the abrupt collapse, a beleaguered Cedar Fair has agreed to pay Apollo $6.5m to cover the expense of the failed bid.