Billion euro package in bid to rescue Euro Disney

Walt Disney has come to the rescue of its loss-making subsidiary Euro Disney with a €1bn funding deal which could give the US group total control over Europe’s biggest tourist attraction.

The deal includes a rights issue and debt restructuring which will inject €420m in cash into the Euro Disney group and eliminate €600m of its debt owed to Walt Disney via an equity swap.

Euro Disney is currently 40% owned by Walt Disney and 10% by the Saudi prince AlWaleed bin Talal with the rights issue to raise €351m open to all shareholders but backed by Walt Disney, which will be required to make a tender offer for the whole company.