By Robert Niles: The Walt Disney Company is moving to take full financial control of the Disneyland Paris Resort.
Euro Disney S.C.A. announced today that Disney is buying out Saudi Prince Alwaleed Bin Talal's Kingdom Holding Co.'s stake in the Paris resort, which would raise Disney's ownership to 85.7 percent of the company. In addition, Disney is making a €2 a share offer for all outstanding shares of Euro Disney S.C.A., in attempt to take full ownership of the company. (Here's the offer, in French.)
If Disney can get to 95 percent ownership through this buy-out offer, it would then delist Euro Disney from Euronext Paris stock exchange and complete the process of taking the holding company private.
In 2015, Disney committed to a €1.5 billion recapitalization program for the Disneyland Paris Resort, to buy out debt and invest in capital refurbishment throughout the property. Disneyland Paris' attendance has been falling, along with tourism in the Paris area in general, following the 2015 attacks in the city and a slowing economy across much of Europe.
"Today’s announcement reflects The Walt Disney Company’s continued confidence in Disneyland Paris and in France, and will enable Euro Disney to continue improving and investing in the Resort," Disney said in a statement.
If you'd like to dove into the full details of Disneyland Paris' ownership and recent financial performance, take a look at its just-published 2016 reference document. (This one is in English.)
The Walt Disney Company does not have full ownership of any of its theme parks outside the United States. Hong Kong Disneyland and Shanghai Disneyland are jointly owned with local governments and the Tokyo Disney Resort is wholly owned by Oriental Land Co. and operated under license from Disney.
Rival Universal in 2015 paid US1.5 billion to buy a controlling stake in USJ Co., which owns Universal Studios Japan, and in 2011 bought out former partner Blackstone Group to take full ownership of Universal Orlando. That leaves Universal Studios Singapore as the only Universal park not majority-owned by Universal parent Comcast.
Six Flags and SeaWorld have announced plans for new parks in China and the United Arab Emirates, and those parks will be owned by local investors and operated under license, similar to the deals that Disney has in Tokyo and Universal has in Singapore.