Euro Disney: DIS Gains Control, Plans to Delist
The Walt Disney Co. has gained close to 100% control of Euro Disney and can now move to delist the struggling theme park outside Paris.
As of Tuesday, the entertainment company owns more than 97% of Euro Disney and said in a press release it will force a mandatory buyout and delisting of the stock under French market rules. The move to delist Euro Disney ends what was a more than 20-year run as a standalone company. The theme park has struggled to lure visitors and has needed at least three bailouts from its parent.
In February, Disney raised its stake into Euro Disney to 85.7% via a deal with Prince Alwaleed bin Talal, the Saudi billionaire investor, and said it would take full control of the theme park. In order to cut Euro Disney’s debt and improve its finances, it also said it would back a move to recapitalize as much as 1.5 billion euros. As part of the deal, minority investors got 2 euros or $2.13 a share for their shares, marking a substantial premium. Disneyland Paris opened in 1992 and has struggled for the majority of the time it has been operational. Recent terror attacks in France has also hurt tourism overall.