Saudi Prince Saves Euro Disney with $468-Million Investment

Strategic Insights -

A Saudi Arabian prince has come to the rescue of Euro Disney, the struggling theme park outside Paris, with an investment of up to 1.9 billion French francs ($468-million). Prince al-Waleed bin Talal bin Abdulaziz, the chairman of United Saudi Commercial Bank (USCB), will buy 13 to 24 percent of Euro Disney, becoming the second-largest shareholder in the park. The deal also includes a financing package of up to 560 million francs for the development and construction of a convention center at the theme park. The investment is seen as a vote of confidence in Euro Disney's financial restructuring plan, which includes a six-billion-franc capital increase.

Key Takeaways:

  • Prince al-Waleed bin Talal bin Abdulaziz, the chairman of USCB, will buy 13 to 24 percent of Euro Disney for up to 1.9 billion French francs ($468-million).
  • The deal includes a financing package of up to 560 million francs for the development and construction of a convention center at the theme park.
  • The investment is part of Euro Disney's financial restructuring plan, which includes a six-billion-franc capital increase.
  • Prince Al-Waleed will become the second-largest shareholder in Euro Disney after Walt Disney, which owns 49 percent of the park.
  • The prince has a multibillion-dollar business empire involving construction, banking, travel, real estate, broadcasting, and supermarkets.
  • He recently teamed up with French hotel group Accor SA in a 1.6 billion-franc offer to buy Air France's Meridien hotel chain, and last September, he bought a majority stake in a Saudi supermarket chain, Panda.

Statistics:

  • Up to 1.9 billion French francs ($468-million) invested in Euro Disney by Prince al-Waleed.
  • 13 to 24 percent stake in Euro Disney purchased by Prince Al-Waleed.
  • 560 million francs available for financing the development and construction of a convention center at the theme park.
  • 6 billion francs capital increase planned for Euro Disney.
  • 49 percent stake in Euro Disney owned by Walt Disney.
  • 1.6 billion francs offered by Prince Al-Waleed in a deal with French hotel group Accor SA to buy Air France's Meridien hotel chain.

Sources:

  • Reuters News Agency: Reuters News Agency PARIS With files from a Globe and Mail correspondent in Riyadh and The Daily Telegraph.
  • The Daily Telegraph
  • The Globe and Mail
  • Al-Eqtissadia, economic daily.