ORLANDO, Fla. - United Parks & Resorts Inc. (NYSE: PRKS), a prominent theme park operator, announced on Monday that its stockholders have given the green light to a substantial $500 million share repurchase program.
The approval, which also included an amendment to the stockholder agreement with investment firm Hill Path Capital LP, signals a clear consensus between the company's board and its shareholders on capital allocation strategies.
The decisive vote, with over 97% in favor, took place during a Special Meeting of Stockholders held on Monday. The approved buyback authorization allows United Parks & Resorts to buy back shares through various means, such as open market purchases and privately-negotiated transactions, in compliance with federal securities laws.
The company clarified that the repurchase program does not have a set expiration and can be paused or stopped at any time, influenced by factors like market conditions, liquidity, and legal restrictions.
United Parks & Resorts operates a suite of well-known brands, including SeaWorld (NYSE:PRKS), Busch Gardens, and Aquatica, with parks across the United States and in Abu Dhabi. The company is recognized for its contributions to animal welfare and conservation, with a history of rescuing over 41,000 animals.
The buyback program's announcement comes with the provision that the repurchases will not increase Hill Path's ownership stake to 50% or more. The repurchase initiative reflects the company's confidence in its financial health and its commitment to delivering value to its shareholders.
The information provided in this article is based on a press release statement from United Parks & Resorts Inc.
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