The Walt Disney Company launches takeover bid for Disneyland Paris

[tennisfan]

But just remember what shareholders have been promised might not materialise. They can close down the shareholders club at any time.

I'm aware of that, I think it will run for a while as they will try to keep their promise. At the end of the day the writing is on the wall and I can't see the deal not going ahead. In the long run I think it can only be a good thing if TWDC invest properly into the parks

We're not going to make huge amounts of money on 100 are we?
I don't know whether to just wait it out...

It will be 200 euros and then whatever the exchange rate is when they are sold

 

[Jonjo]

Sadly I think it will take about 10 years for TWDC to invest properly in the resort. TWDC taking over DLP is not going to be the quick fix fans are fantasising about. There will be no new rides or attractions opening the next day or a third theme park opening.

If the take over goes ahead TWDC are only taking over Euro Disney as a company. The exisiting 10 year business plan already created for Euro Disney for Disneyland Paris will remain in place.

Disneyland Paris will not be merged into WDPARS USA which manages the Disneyland resort or WDPARS International which manages Walt Disney World.

Euro Disney will still have to pay TWDC 70 - 90 million euros a year in management and licensing fees, and the 1.5 billion TWDC are injecting into DLP is to pay off part of the debt the resort has with.. TWDC.

It's going to be a very painful few years if the takeover takes place with job losses, and huge budget cuts to reduce the operational costs at the resort. Which will mean of course increase prices for the hotels, in the shops and restaurants.

But a take over by TWDC will be good in my opinion for the very long term future and financial security of the resort, and hopefully under TWDC control the Guest experience will improve.

 

[Jonjo]

I would guess that negating that promise can cause some legal action. It is a promise that was made in conjunction with the tender offer, has a prominent place on the info website. That French small shareholders association that has been very vocal against Euro Disney would have a ball with a legal case against TWDC. I think the last thing they want to happen is more negative publicity in France about issues like that. Ultimately the costs are really not that bad. The discounts are more likely to generate income instead of taking income away. The Salon Mickey really does not cost a lot to run at all. The biggest cost is the salary for the CMs. A large class action type law suit in France would cost a significant amount of salary for lawyers.

Who will take them to court? I can't see APPEAD taking that risk. It's an organisation of shareholders, ordinary small shareholders like you or I. All have whom have lost money on their investment in Euro Disney due to years and years of miss management of the resort.

Euro Disney can close the Shareholders Club down when ever they like, it is in the in terms and conditions you agreed to when you joined the club. The club even highlighted that fact when they sent an e-mail to members recently informing them about the 10 year extension of memberships.

 

[Jonjo]

For anyone interested in seeing how the OPA is progressing day by day I'm publishing a daily update on my blog with the number of shares purchased each day by TWDC and the percentage they own.

Yesterday TWDC purchased 9,746 Euro Disney S.C.A. shares taking their ownership of Disneyland Paris to 86.07% with 674,248,797 shares.

It will be interesting to see how the OPA develops and if TWDC manages and reach the 95% target they require to launch a mandatory takeover of Euro Disney and if the AMF and French Government will allow them to do so.

 

[Ms Poppins]

I know a lot of us on here hold our shares with Halifax so I thought I'd post this in case anyone else is wondering..

I got an email yesterday from Halifax advising of the corporate offer and to log into my share dealing account to see/take part in the offer. Once logged in you need to click on 'Corporate Actions' on the right hand side of the page. Then click on the link for your account, and then the link for the offer. It explains what to do quite clearly, either elect to sell your shares or elect to sell some of your shares. If you don't want to sell you do nothing.

The official date the offer closes is 8 June, as per above posts, however Halifax are asking you to complete your request to sell by 29 May on their site, to give them time to process everything by the closing date. If you do sell, they expect the funds to be available by 15 June.

There's no mention of fees a this stage. I haven't decided what to do so didn't click to sell yet! I know that any fees up to 100E will be refunded, but I'm hoping that some arrangement will be made by Disney to pre-empt this with main brokers such as Halifax in bulk to avoid them having to do endless refunds on fees.

I'm sure I will probably sell, but will wait a bit before I decide. I can't think of a reason to keep them to be honest. My decision to buy was an emotional one, but I do love the perks too - which we should retain for 10 years. I really want the parks to be invested in so I'm kind of torn. However, I can't imagine my 100 shares will be a deal breaker for them, lol.

 

[micksn]

Ditto! I feel I should sell, but like the idea of owning a little bit of Disney (my bit is the star on top of the castle) Hopefully it will be straightforward, it's a shame the exchange rate is so poor at the moment!

 

[Ware Bears]

However, I can't imagine my 100 shares will be a deal breaker for them, lol.

Neither can I which is why I'm being so stubborn I am clinging on to the bitter end! If it becomes mandatory (which I think is a dead cert) I'll still get €2 per share ..... and if I do have to pay fees, in my head they've been offset by the money I made when I sold my rights issues (was that last year or the year before???)

I do actually think it makes financial sense for TWDC to take control and think long term it will be the best thing for the future of DLP but won't willingly give up my little share of the magic!

 

[maleficent_man]

Apologies if already covered but I've not really looked into it a great deal - we simply hold 20 shares for the fun (and previous shareholder club requirement). Can we simply hold onto them or will they eventually be compulsory purchased?

 

[micksn]

I think I'll probably sell, but like the idea of owning a bit of Disney. (my bit is the star at the top of the castle!) To be honest the exchange rate being so appalling at the moment is putting me off more than anything.

 

[tennisfan]

Sadly I think it will take about 10 years for TWDC to invest properly in the resort. TWDC taking over DLP is not going to be the quick fix fans are fantasising about. There will be no new rides or attractions opening the next day or a third theme park opening.

If the take over goes ahead TWDC are only taking over Euro Disney as a company. The exisiting 10 year business plan already created for Euro Disney for Disneyland Paris will remain in place.

Disneyland Paris will not be merged into WDPARS USA which manages the Disneyland resort or WDPARS International which manages Walt Disney World.

Euro Disney will still have to pay TWDC 70 - 90 million euros a year in management and licensing fees, and the 1.5 billion TWDC are injecting into DLP is to pay off part of the debt the resort has with.. TWDC.

It's going to be a very painful few years if the takeover takes place with job losses, and huge budget cuts to reduce the operational costs at the resort. Which will mean of course increase prices for the hotels, in the shops and restaurants.

But a take over by TWDC will be good in my opinion for the very long term future and financial security of the resort, and hopefully under TWDC control the Guest experience will improve.

I know its going to be a slow progress to properly invest, i've been a shareholder since 2001 so am very patient. Any investment can only be a good thing. Euro Disney have tried but were constrained by the debts they had. I look forward to the future and what TWDC can do with the parks.

Apologies if already covered but I've not really looked into it a great deal - we simply hold 20 shares for the fun (and previous shareholder club requirement). Can we simply hold onto them or will they eventually be compulsory purchased?

Its looking likely they will be compulsory purchased eventually as TWDC want to withdraw the stock on the markets.

 

[meryll83]

Did anyone else get an anniversary key-ring through the post this month?
Thought it was a bit ironic!

 

[Jonjo]

Did anyone else get an anniversary key-ring through the post this month?
Thought it was a bit ironic!

Nice gift just as they take your shares off you

 

[Jonjo]

Apologies if already covered but I've not really looked into it a great deal - we simply hold 20 shares for the fun (and previous shareholder club requirement). Can we simply hold onto them or will they eventually be compulsory purchased?

If you want to sell it's best to use then Centralised Procedure to sell than wait for a compulsory takeover.

The advantage of using the Centralised Procedure is that you will benefit from any bulk trade arrangement TWDC makes with a large shareholder.

So if one large shareholder is holding out, stopping TWDC from gaining the 95% needed for the application to apply for a mandatory takeover and Disney offer them say €2.50 a share to sell, all the other shareholders selling via the Centralised Procedure will also benefit in the increase of the Offer price.

If you holdout and wait until and the takeover is approved you will just get the €2 a share.

Plus the danger is TWDC does not reach 95% and Euro Disney has to go through yet another recapitalisation. Where you will find your shares devalued in value to €0.60 per share.

 

[mikelan6]

I received a notice from my online stock broker here in the US about the offer. I only have 20 shares and have lost over 80% of it's value since I purchased years ago. The agent I spoke with told me there would be a $38 transaction fee, which pretty much makes this offer worthless.

 

[Jonjo]

I received a notice from my online stock broker here in the US about the offer. I only have 20 shares and have lost over 80% of it's value since I purchased years ago. The agent I spoke with told me there would be a $38 transaction fee, which pretty much makes this offer worthless.

TWDC have agreed to pay transaction fees up to the value of €100 / US$111 per trade so that will more than cover the brokers transaction fees.

 

[Jonjo]

Here is a handy bar graph that updates automatically with TWDC stake in Euro Disney

http://sneakymichael.com/dlp-ownership/

 

[Flossbolna]

TWDC have agreed to pay transaction fees up to the value of €100 / US$111 per trade so that will more than cover the brokers transaction fees.

The Tender offer stipulates the following:

"3.9 Remuneration of Brokers – Assumption of Costs
EDL Holding will reimburse the trading fees (brokerage fees and corresponding VAT) incurred by the
selling shareholders of shares tendered in the Semi-Centralized Procedure up to (i) in the case of
orders to tender shares for an aggregate purchase price of €3,333 or less, €10 per transaction and (ii) in
the case of orders to tender shares for an aggregate purchase price in excess of €3,333, 0.30% of such
purchase price, subject to a cap of €100 per transaction; it being specified however that, if the Offer is
annulled for any reason, the shareholders of the Company may not seek any reimbursement of these
trading fees from the Bidders.
Only shareholders whose shares are registered in an account on the day preceding the opening of the
Offer may receive reimbursement from the Bidders for these trading fees.
The requests for reimbursement of the fees mentioned above will be accepted and processed by the
financial intermediaries for a period of 25 business days from the last day on which the Offer is open."

Since @mikelan6 owns only 20 shares, the aggregate purchase price would be 40 € and therefore fall unter (i) of the above. He would only get a refund of 10 €. The 100 € only applies to people selling 16667 shares or more according to my calculation.

 

[ThBa]

I´ve just sold my shares too.

I am a little bit sad about that because an era will end but we will get shareholders club benefits for the next 10 years and I hope and pray that there will be a beter future for our DLP.

Lets go Disney.....it is up to you now.

 

[meryll83]

Singing The Clash to myself right now...

 

[tennisfan]

I've tendered my shares with Halifax, need to wait for my password to be sent for the remaining ones I own with Societe Generale in order to logon and sort those out