USA/France: The Walt Disney Company Plans Complete Takeover of Euro Disney
The Walt Disney Company announced today the acquisition of 90 percent of Kingdom Holding Company’s interest in Euro Disney S.C.A., representing nine percent of Euro Disney’s outstanding shares. This transaction – at a price of two Euros per share – will increase Disney’s interest in Euro Disney to 85.7 percent.
Also, the subsidiary intends to make a cash tender offer for all remaining outstanding shares of Euro Disney at a price of two Euros per share, representing a 67 percent premium to the trading price at the close on February 9th, 2017. Moreover, the Walt Disney Company informed Euro Disney that it is committed to support a recapitalization of up to 1.5 billion Euros for the Euro Disney group of companies to make way for further investments in Disneyland® Paris and to reduce debt and increase liquidity.
The group’s financial condition has been significantly and negatively impacted by the November 2015 events in Paris and the challenging business conditions that continued through 2016 in France and throughout Europe. The comprehensive proposal announced by Disney affords more flexibility to shareholders, addresses the group’s financial needs and reflects its ongoing support for the long-term success of Disneyland Paris. Euro Disney’s Supervisory Board has expressed its support of these developments and has asked its audit committee, which is comprised solely of independent members, to make a recommendation for the appointment of an independent expert to deliver a fairness opinion in connection with the proposed tender offer. (eap)
