Alwaleed stake boosts Disney’s Paris holding

helsinki — Walt Disney boosted its holding in its loss-making Paris theme park to 85.7 per cent by acquiring a stake from Saudi Prince Alwaleed bin Talal, and offered to acquire the rest as it seeks to revive the resort’s popularity.

Disney is acquiring a nine per cent stake in Euro Disney from Alwaleed’s Kingdom Holding for €2 ($2.13) a share, payable in Disney stock. It’s offering €2 in cash apiece for the rest, according to a statement on Friday. That’s 67 per cent more than Euro Disney’s closing price on Thursday.

Chief executive officer Bob Iger is doubling down on the troubled resort, which has already been bailed out by Disney more than once. Hurt by sputtering European economies in recent years, the park’s finances were further hit by the 2015 Paris terrorist attacks and challenging business conditions that continued through 2016, Burbank, California-based Disney said.

Disney said it will support Euro Disney’s recapitalisation of as much as €1.5 billion. That follows a 2014 rescue package, when the resort was pledged at least €1 billion over 10 years to add attractions and spruce up grounds. The new plan “affords maximum flexibility to shareholders, addresses the group’s financial needs and reflects its ongoing support for the long-term success of Disneyland Paris,” Disney said.

Shares of Euro Disney jumped 65 per cent to 1.98 euros at 9:27am in Paris, giving the company a market value of €1.55 billion. — Bloomberg