Feb 10 Walt Disney Co said it would
raise its holding in Euro Disney SCA to 85.7 percent
by acquiring most of Saudi Prince Alwaleed Bin Talal's Kingdom
Holding Co's stake in the Paris Disneyland operator.
The media company, through its subsidiary EDL Holding
Company, is buying a 9 percent stake in Euro Disney for 2 euros
($2.13) a share, to be paid in Disney common stock, the company
said in a statement.
The deal represents a 67 percent premium to the closing
price of Euro Disney's shares on Thursday.
Following the deal, Kingdom Holding's stake in Euro Disney
will come down to 1 percent from 10 percent, Disney said.
Disney also made a cash offer of 2 euros a share to acquire
the remaining shares of Euro Disney.
After the completion of the voluntary tender offer, if
Disney and its subsidiaries own at least 95 percent of Euro
Disney's shares, it would promptly buy out and delist Euro
Disney shares from the Euronext Paris stock exchange.
Disney also reiterated its commitment to a 1.5 billion euro
racapitalisation for Euro Disney, which would go into its
infrastructure improvements and debt reduction.
Euro Disney's financial condition has been negatively
impacted by the 2015 Paris attacks and tough business conditions
throughout France and Europe in 2016, Disney said.
Euro Disney has been reeling under increasing losses, with
annual net loss widening to 858 million euros in 2016 from 102
million euros in 2015.
($1 = 0.9398 euros)
(Reporting by Sangameswaran S in Bengaluru; Editing by Sunil