The Walt Disney Company looks likely to delist Euro Disney as it prepare for a full takeover of the Disneyland Paris operator.
Disney now holds more than 97% of capital at Euro Disney SCA after it started a public tender offer last year, the company said in a statement on June 13. In February it bought a 9% stake from Saudi Prince Alwaleed Bin Talal’s Kingdom Holding Co.
Under French stock market regulations, Disney can now force a mandatory buy back of the remaining shares and delist the company as of June 19. Euronext Paris has already suspended the trading of Euro Disney shares.
The first and only Disney resort in Europe, which also includes the park Walt Disney Studios, has been operated by the independently-owned Euro Disney since opening in 1992. Yet despite attendance at the main Disneyland Paris park outperforming all other theme/amusement parks in Europe, it has failed to turn a profit and had to be bailed out by its parent at least three times.
The lacklustre performance of many European economies, coupled with the impact of the 2015 Paris terrorist attacks, have created difficult trading conditions for Disneyland Paris Resort in recent years. Disney CEO Bob Iger is thought to be keen to bring the business in-house as part of a deeper commitment by the company to its global theme parks business, which in general is performing more strongly outside of Europe.