Disney: major recapitalization plan for Euro Disney.

(CercleFinance.com) - Disney unveiled on Friday a recapitalization plan for its troubled subsidiary Euro Disney, which will call for an injection of up to 1.
5 billion dollars to address the group's financial needs.

According to Disney, this aims to continue improvements at Euro Disney's Disneyland Paris, while reducing the group's debt and increasing its liquidity.

More specifically, Disney will acquire through one of its subsidiaries 90% of Kingdom shares in Euro Disney at a price of two euros per share, increasing its stake in Euro Disney to 85.7%.

Disney also said it intends to make a cash tender offer for all of Euro Disney's remaining outstanding shares at a price of two euros per share, representing a 67% premium relative to the share price at close yesterday.

Listed in Paris, Euro Disney shares were soaring 65% in early afternoon trading. Meanwhile in New York, shares in Disney were down 0.1% in pre-market trading.

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