Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, January 6, 2023

Article Excerpt

SIX FLAGS ENTERTAINMENT CORP., $25.79, symbol SIX on New York, is the world’s largest operator of regional theme and water parks. It currently operates 25 in the U.S., two in Mexico, and one in Canada. On December 21, 2022, Connecticut-based Land & Buildings Investment Management LLC released a presentation highlighting why it thinks Six Flags is undervalued. The activist real estate investor owns 3% of the theme park operator’s stock. Land & Buildings believes Six Flags could add $22 to its share price over the next 18 months by separating its real estate assets from its park operations. In fact, Land & Buildings believes that the theme park operator’s real estate is worth more than its current market capitalization (the total value of all outstanding shares) of $2.1 billion. In 2022, Six Flags’ new CEO, Selim Bassoul, introduced a new pricing strategy at its theme parks, including higher ticket prices and the elimination of free tickets and heavily discounted product offerings. But despite…