Euro Disney said on Monday it had agreed a 1 billion euro funding deal backed by its largest shareholder, the Walt Disney Co, which includes a share sale and a debt restructuring, to allow it to invest in the business. Euro Disney, based in an eastern suburb of Paris, is 40 percent owned by parent Walt Disney and 10 percent by the Saudi prince Al-Waleed bin Talal bin Abdulaziz al Saud.The plan includes a rights issue of 420 million euros open to all shareholders and backed by Walt Disney. The company said the move would improve the cash position of Euro Disney by about 250 million euros.In addition, about 600 million euros of the group's debt owed to Walt Disney will be converted into equity, while credit lines extended to Euro Disney by its parent will also be consolidated.
The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company. Shares of DIS traded higher by 1.91% or $1.66/share to $88.45. In the past year, the shares have traded as low as $63.10 and as high as $91.20. On average, 5670880 shares of DIS exchange hands on a given day and today's volume is recorded at 7552890.
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