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The Walt Disney Company to buy all remaining shares of Euro Disney S.C.A.

Discussion in 'Disneyland Paris' started by Donald Dutch, Feb 10, 2017.

  1. Donald Dutch

    Donald Dutch Active Member

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    This morning, The Walt Disney Company released a press statement revealing Disney’s intention to purchase all the remaining shares in Euro Disney S.C.A. and support a recapitalization of up to €1.5 billion for the Euro Disney group to enable the group to continue implementation of improvements to Disneyland Paris, reduce debt and increase liquidity. Key points of the press statement:

    - The Walt Disney Company ("Disney") announces the acquisition of 90% of Kingdom Holding Company's ("Kingdom") interest in Euro Disney S.C.A. ("Euro Disney"), representing 9% of Euro Disney's outstanding shares.

    - The proposed transaction will increase Disney's interest in Euro Disney to 85.7% from 76.7%.

    - The price for the transaction is €2.00 per share and will be paid in shares of Disney common stock.

    - Disney also announces its intention to make a cash tender offer for all remaining outstanding shares of Euro Disney at a price of €2.00 per share, representing a 67% premium to Euro Disney's trading price at its close on February 9, 2017.

    - Subsequent to the completion of the tender offer, Disney is committed to support a recapitalization of up to €1.5 billion for the Euro Disney group of companies ("Group") to address the Group's financial needs.

    Complete article can be found here.
     
  2. Ransom

    Ransom Well-Known Member

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    I think this will be a good move!
     
  3. SorcererMC

    SorcererMC Well-Known Member

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    As to why this is happening sooner rather than later - from the Euro Disney 2016 Reference Document: around page 57/116

    The Group’s high level of borrowings requires the Group to devote a significant portion of its operating cash flow to service debt.

    As of September 30, 2016, the Group had consolidated borrowings of €1.1 billion and a negative equity of
    €140 million.
    -------------
    The Group has regularly incurred losses and is not certain to generate profits in the near future.
    The Group’s net loss for Fiscal Year 2016 amounted to €858 million, compared to a net loss of €102 million and
    €114 million in Fiscal Years 2015 and 2014, respectively.​

    Also - attendance is down to 13.4 mln from 14.8 mln in 2015 and 14.2 mln in 2014. Aside from Brexit, the report cites:
    Consistent with the broader tourism industry in Europe, the Group has recently been impacted by the challenging economic and
    geopolitical environment and its subsequent impact on consumer behavior and spending. The Group notably faced
    difficult external factors impacting Paris tourism, including strikes, exceptionally poor weather and floods, as well as
    acute public security concerns.​
     
    Last edited: Feb 10, 2017
  4. deix15x8

    deix15x8 Active Member

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    This should be great news for the resorts future. In addition to the access to resources and support, I'm sure we'll see far more cross promotion with the resorts in the US. This resort is turning 25 years old this year and yet when I went last year 99% of the people I mentioned it to had no idea that Disneyland Paris even existed. Even Disney people I talk to aren't very aware of the international resorts. Their is a whole market for Americans taking European vacations to visit. We spent 5 nights during a vacation that started in London, then went to Paris, followed by Barcelona, and ended with a cruise back to the USA for some time in Florida. It just worked as a great place to stay in France that ensured we would be comfortable and safe with so much going on right now.

    Now that Disney is hoping to get to 100% ownership though, I'm waiting to see what we see about DVC in the resort. They still have renovations on the calendar for the hotel New York and Disneyland Hotel that could easily get a wing converted.
     
    Donald Dutch likes this.
  5. Disneysea05

    Disneysea05 Well-Known Member

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    I don't think they are Disney people then, they're Disney World people. And that's ok, but now that I've seen what the international Disney destinations offer, it would have been a shame if I only ever experienced Disneyland and Walt Disney World.
     
  6. Donald Dutch

    Donald Dutch Active Member Original Poster

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