(Bloomberg) -- DXB Entertainments agreed to pay Six Flags Entertainment $7.5 million for the rights to decide over the next five years whether to proceed with plans for a Six Flags theme park in Dubai.
“SF Dubai LLC has a entered into a right of first refusal agreement with regard to the intellectual property usage of the brand Six Flags and/or Six Flags Dubai,” the company said in a statement on Tuesday.
DXB Entertainments, originally known as Dubai Parks & Resorts, will make the payment to Six Flags as part of a settlement agreement with both sides agreeing there would be no further claims, it said.
Related: Theme Park Developer Puts Brakes on Six Flags Dubai Project
DXB Entertainments, which hasn't posted a profit since it listed in 2014, scrapped plans earlier this year to open a Six Flags theme park in the emirate when funding became unavailable. The company, which also operates Legoland and a Bollywood-inspired park, posted a loss of 215.7 million dirhams ($58.7 million) in the first quarter.
The shares gained 2% as of 11:13 a.m. in Dubai.
Read More: Dubai's Escape From Economic Funk Hinges on Retail, Tourism
To contact the reporters on this story: Layan Odeh in Dubai at lodeh3@bloomberg.net;Nicolas Parasie in Dubai at nparasie1@bloomberg.net
To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Abbas Al Lawati
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