NEW YORK: China’s Zhonghong Zhuoye Group Co. agreed to acquire a 21 per cent equity stake in SeaWorld Entertainment Inc. from Blackstone Group LP, becoming the embattled US theme-park operator’s largest shareholder.

The Asian leisure and tourism holding company will pay Blackstone $23 (Dh84.4) a share, a 33 per cent premium to SeaWorld’s closing price of $17.31 Thursday. The stake would be valued at $429.1 million based on 88,835,076 shares outstanding, according to Bloomberg data.

SeaWorld Chief Executive Officer Joel Manby, in a statement, said Zhonghong’s long-term investment reflects confidence in the company’s brand and a shared commitment to “protect wildlife and the environment.”

SeaWorld, which owns 12 theme parks, including its namesake attractions, has battled negative publicity following the 2013 release of the documentary “Blackfish,” which argued killer whales shouldn’t be kept in captivity. After two years of declining attendance, the Orlando, Florida-based company replaced its chief executive in 2015 with Manby, who formerly ran Dollywood. For his part, Manby ended whale breeding at the parks and is investing in more non-animal attractions, such as roller coasters and ocean-themed rides.

As part of the new relationship with Zhonghong, SeaWorld will advise its Zhonghong Holding Co. affiliate on the development of theme parks, water parks and family entertainment centers.

The announcement sent shares up as high as $20.94 in early trading in New York Friday. The stock had fallen 9 per cent this year through Thursday.

Expanded board

With the transaction, Blackstone will no longer hold any shares in SeaWorld or seats on its board. As of Dec. 31, the alternative asset manager was the company’s largest holder with 19.5 million shares and a 21.95 per cent stake, according to Bloomberg data.

After the deal closes, SeaWorld will increase the size of its board to 11, with Yoshikazu Maruyama, president of Zhonghong Group’s American operation, and Yongli Wang, chief strategy officer of Zhonghong Group, taking seats, the companies said.

Also under the pact, Zhonghong won’t be able to sell its stakes for two years, and must get the approval of independent directors to buy more than 24.9 per cent of shares outstanding.

The transaction is expected to close in the second quarter.