Euro Disney and the stock market are over….

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<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>Disneyland Paris was inaugurated on April 12, 1992 in Chessy (Marne-la-Vallée) 30 minutes by car from Paris. It is the only amusement park currently in Europe of the American company Walt Disney. </span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>For 25 years, the commercial record has been remarkable. With 320 million visitors since its opening, it is Europe’s leading tourist destination, ahead of the Eiffel Tower and the Château of Versailles combined. </span></p>
<p align=”JUSTIFY”><span style=”font-family: “Liberation serif’, serif;”>This establishment has played a leading role in the development of the Val d’Europe (new town of Marne-la-Vallée with 5 municipalities) which now has 35,000 inhabitants against 3000 in 1992. This objective was set in 1987 in an agreement signed between the French State, local authorities and Disney. Disney has instilled the American style visible in particular through real estate, the Val d’Europe shopping centre and the development of transport, reinforcing the attractiveness of the Val d’Europe and Eastern Paris. </span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>However, profitability is still not up to date with only one positive year since 2000. 2016 was a very difficult year with a net historical loss of €705 million following the terrorist threat in France.</span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>Peu after its opening, Euro Disney already had to face a colossal debt (more than 3 billion euros) requiring multiple recapitalization plans, on the verge of bankruptcy in early 1993. Indeed, the initial investment was very significant (3.81 billion euros financed by borrowing and market access) and the maintenance and renewal of the offer offered to visitors imply new investments. </span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>In the autumn of 1989, euro Disney was listed on the stock exchange for 72 francs (about 11 euros). It peaked at 25 euros in April 1992 before the opening and then gradually fell (loss in 6 months of half its value) following the opening of the park to the point of being worth only a few cents (5 at the lowest), thus falling into the category of “penny stock”.</span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>This is how on January 10, The Walt Disney Company announced the repurchase of all the shares of its subsidiary that it did not yet own, thus starting a delisting. Following this announcement, the price was 1.99 euros. </span></p>
<p align=”JUSTIFY”><span style=”font-family: “Liberation serif’, serif;”>The takeover bid will run from April 26 to May 23 at a purchase price of 2 euros per share, i.e. a premium of 67% compared to the closing of February 9 with mandatory withdrawal upon crossing the 95% threshold. </span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>To do so, an agreement had to be reached with the main minority shareholder Kingdom, holding of the Saudi prince Al Waleed. This was the case on Friday, February 10, when The Walt Disney Company undertook to buy back 90% of the holding company’s stake for a price of 2 euros per share, thereby increasing its stake in Euro Disney from 76.7% to 85.7%. </span></p>

<p align=”JUSTIFY”><a name=”_GoBack”></a><span style=”font-family:’Liberation serif’, serif;”>This very day, at the opening of the Paris market, the Euro Disney share price rose 65% compared to the previous day to 1.99 euros and then was set at the proposed price of 2 euros at closing. </span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>Recapitalization, even if some small shareholders would keep their shares for sentimental reasons and if the share were to remain listed on the Paris stock exchange, it could reach up to 1.5 billion euros. The main objectives are to reduce debt, improve cash flow and supply. </span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>In the fall of 2017, Villages Nature Paris will open its doors. The result of the collaboration between Euro Disney SCA and the Pierre et Vacances Center Parcs group, “A place of discovery between Man and Nature, Villages Nature® Paris reinvents holidays at the gates of Paris and Disneyland® Paris.
Escape, recharge your batteries and find yourself with family, friends or two no longer needs to go far. Entertainment, sport, discovery, relaxation, everything is there, gathered for the first time in our 5 recreational worlds. “</span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>Euro Disney is therefore expanding its offer to the public by adopting a “sustainable tourism” approach.</span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>Sources :</span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>https://www.lesechos.fr/lesechos-plus/0211943971475-vingt-cinq-ans-apres-son-ouverture-disneyland-paris-nage-en-plein-paradoxe-2079291.php</span></p>
<p align=”JUSTIFY”><span style=”font-family:’Liberation serif’, serif;”>https://business.lesechos.fr/directions-financieres/financement-et-operations/introduction-en-bourse/0211791963668-clap-de-fin-pour-l-histoire-boursiere-d-euro-disney-a-paris-305960.php</span></p>

<h3 style=”text-align: right;” align=”JUSTIFY”><a href=”https://www.linkedin.com/in/vincent-inthinavong-646b57127/”>Vincent Inthinavong</a></h3>

Vincent INTHINAVONG


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