FORT WORTH, Texas--()--Q Funding III, L.P., the holder of 9.8% of the outstanding units of Cedar Fair, L.P. as of January 20, 2010, today announced that it will vote against the merger agreement providing for the acquisition of Cedar Fair by Siddur Holdings, Ltd, an entity controlled by affiliates of Apollo Global Management, for $11.50 per unit in cash, which represents a significant discount to Cedar Fair’s current price.
Q Funding III does not consider the $11.50 offer indicative of the true value of the Company and does not believe it makes sense to vote for the merger and effectively sell at $11.50 when a holder can sell in the market for a higher price. Cedar Fair closed at $12.21 per unit on the New York Stock Exchange yesterday, a more than 6% premium to the $11.50 offered by Apollo Global Management. Q Funding III is concerned that the majority of Cedar Fair’s units may be held by retail holders who might be taken advantage of if they mistakenly agree to the $11.50 offer price.
Cedar Fair has numerous options to unlock the value in its units, but has thus far chosen to take the path that creates the least value for all of its unit holders. Q Funding III believes other large holders intend to vote against the proposed transaction and urges all holders to do the same.
Q Funding III, L.P. is part of the Q Investments family of funds, a leading group of private investment firms based in Fort Worth, Texas.