Six Flags readies first dividend since the pandemic

Six Flags Entertainment Corp (NYSE: SIX) confirmed it will pay its first dividend since the pandemic, ahead of the company’s agreed merger with Cedar Fair.

A special dividend of $1.53 per share will be payable on 1 July.

On the same day, the merger is expected to close.

The merger will result in a new company trading on the NYSE under the stock ticker ‘FUN’.

It sees the combination of the two largest theme park operators that aren’t owned by movie studios.

Together they run 42 theme parks across the United States, Canada, and Mexico. The companies reckon they can deliver $200 million worth of ‘synergies’ each year, with specifically $120 million of savings also expected in the first two years.

Going into the summer, on the eve of the merger, both stocks traded strongly on Tuesday.

Six Flags shares were up around 5% to $31.67, whilst Cedar Fair gained nealy 8% to $51.75.