2:33am ET
Just before the struggling park celebrates it's quarter-century anniversary, The Walt Disney Company is jolting for sole ownership of Disneyland Paris. Right now Disney has roughly 85% ownership of Disneyland Paris; in order reach the point where they become eligible for a mandatory buyout, TWDC must get to 95%.
Over the next 5 months, the company will be placing bids and paying out Euro Disney shares in order to gain full ownership of the resort and restore Disneyland Paris' financial position. Per CNW:
The Walt Disney Company ("Disney") announced that it will acquire through one of its subsidiaries 90% of Kingdom Holding Company's ("Kingdom") shares in Euro Disney S.C.A. ("Euro Disney") at a price of €2.00 per share, increasing its interest in Euro Disney to 85.7%. Disney also announced that this subsidiary intends 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 the trading price at the close on February 9, 2017. Moreover, Disney has informed Euro Disney that it is committed to support a recapitalization of up to €1.5 billion for the Euro Disney group of companies ("Group") to enable the Group to continue implementation of improvements to Disneyland® Paris, reduce debt and increase liquidity.
Disney officials believe full-control is needed to turn around the park's financial flop, despite planning for a major 25th anniversary celebration and tourist draw in 2017. If the company follows through with the deal, shareholders will have maximum flexibility and can put funds towards the resort's long-term success.
TWDC will acquire Euro Disney shares through an off-market trade block with all transactions being finalized by February 15, 2017. They will be paying €2.00 per share for the common stock of based on Disney's closing price in New York on February 14. Once complete, Kingdom's ownership will drop from 10% to 1%.
Once Disney finalizes that transaction on February 15, the company and it's subsidiaries are believed to have ownership of 95% of TWDC and Euro Disney's interest-- allowing for a mandatory buyout.
Euro Disney has been a subsidiary with the company since the park was built in 1992. If it chooses to, Euro Disney can de-list and no longer have a part in these transactions and developments. If Euro Disney chooses to stay listed as a subsidiary, they will need to put a pro-rated amount of money back into DLP.
Disney has a recapitalization plan in place to pour €1.5 billion towards future DLP projects, debt clearance and liquidity. As previously stated, if Euro Disney remains listed, it would have put money towards improvements as well, which could be up to €1.23 billion.
With transactions and tentative deals going before audit committees and shareholders, the deal could be finalized and the Walt Disney Company could have sole ownership of Disneyland Paris by June. Meanwhile, Disneyland Paris' 25th Anniversary Celebration kicks off in March and is expected to rake in revenue and tourists from around the globe. Here's what's planned: DLP25.