Home

[txgrl]

If this is such good news? Why is the share price dropping?

Does anyone know what ever happened to that petition to Bob Iger last year?

[A&S&O]

If this is such good news? Why is the share price dropping?

Does anyone know what ever happened to that petition to Bob Iger last year?

Maybe existing shareholders aren't going to invest more at 3.50 a share if they can wait a few months and get them for 1.25 a share?

[cazspence]

The offer of €1 a share is only if you are a current share holder, and you must buy them and a ratio of 9:1. Meaning as I have 101 shares I would have to buy 909 shares costing €909 or none at all.

[A&S&O]

The offer of €1 a share is only if you are a current share holder, and you must buy them and a ratio of 9:1. Meaning as I have 101 shares I would have to buy 909 shares costing €909 or none at all.

Ah, I thought there'd be a catch! I thought it might be that they would limit your buying to the same number of shares that you currently held. Instead, I think they've put buying additional shares out of most people's reach, especially as the investment just sits there and doesn't pay a dividend.

What does the mention of shares for €1.25 mean?

Where did you find the information?

[cazspence]

The offer of €1 a share is only if you are a current share holder, and you must buy them and a ratio of 9:1. Meaning as I have 101 shares I would have to buy 909 shares costing €909 or none at all.

Ah, I thought there'd be a catch! I thought it might be that they would limit your buying to the same number of shares that you currently held. Instead, I think they've put buying additional shares out of most people's reach, especially as the investment just sits there and doesn't pay a dividend.

What does the mention of shares for €1.25 mean?

Where did you find the information?

The information is all on the corporate website.
http://timon.disneylandparis.com/corporate/en/

The €1.25 a share is what TWDC will buy them back for .

[never2old]

The offer of €1 a share is only if you are a current share holder, and you must buy them and a ratio of 9:1. Meaning as I have 101 shares I would have to buy 909 shares costing €909 or none at all.

You can buy up to 909 shares (but you can buy less); Disney will buy any shares that existing shareholders don't subscribe to.

If I understand the next part right, though, you'll be able to sell all your actions back to Disney (including the ones you had before) at the guaranteed price of 1.25 - or you can keep any actions you have for yourself.

So say you have 101 shares, which cost 3.5 EUR each (if you're lucky... if they were worth more you're already losing out). Their total value is

101*3.5 = 353.5 EUR

You buy the new shares at 1 EUR

909*1 = 909 EUR

And have spent 353.5 + 909 = 1262.50 EUR for your 1010 shares.

If you then sell them back to Disney, you'll get 1.25 per share ie 1010 * 1.25 = 1262.50 EUR (ie you get all your money back)

Or you could just sell the additional 909 shares you bought at 1 EUR, and make 0.25 EUR profit per share.

If you don't buy any new shares, and decide to sell your 'old' shares, you'll be losing 2.25 EUR per share (3.5 - 1.25) - ie for your 101 shares, you'll get back 126.25 EUR (instead of the 353.50 they cost you).

If you decide to keep your shares, and do nothing (buy no new ones nor sell them), the value of your shares will probably go down. If value stays around the 1.25 / 1.50 EUR per share, you'll have lost about 2 EUR per share. Buying some new shares at 1 EUR and selling them a bit later at 1.25 EUR allows you at least to make some of that money back...

[SGregory27]

Should I buy shares now then. Shares now up at 3.17.
I would like a piece of the magic and the perks are nice. Or should I wait for the shareholders agm

[Rocketeer]

It's probably been mentioned before, but I'm sorry I can't find it.

How big is the debt that DLP has? They use the profits each year to service the debt, but how long would it take to pay off the debt?

I believe it was €1.7bn, but that has now been reduced down to €1bn.... still an eye watering amount of debt.

I'm not entirely sure on how much profit the make each year, but I'm willing to guess that it'll still take a decade or more to pay off the amount.

[A&S&O]

If you'd asked that question at 9am, I'd have said definately buy. Now however, its anyone's guess what will happen to the share price.

Are you already a shareholder? The €1 share offer is only open to current shareholders.

[SGregory27]

No we have been talking about for awhile and wanted to do it before out next trip in Feb.

[jeakat24]

Really wish I'd free around 11am to get myself some shares  Oh well, the shareholders club probably wouldn't pay for me (though a trip to Salon Mickey would be nice)

[anthony2k6]

msRavenswood mentioned this a rumour, so what would happen?

Given that Disneyland Paris currently employs over 15,000 staff (heard it from my Tour guide during my last visit), I assume a big round of restructuring. Staff is going to be a very big chunk of the fixed cost of the park, so reducing that will give a lot of gains over a relatively short period of time.
After that, probably investing money to get the quality of the parks up (perceived or otherwise), to draw more guests.
Don't count on any drops in price, if anything, expect them to go up.

But is it not true that they have to employ that number of people due to French employment laws - especially the maximum working week law?

[anthony2k6]

If its cash flow, then I wonder if there will have to be emergency cost saving measures implemented?

Time to close a hotel again - especially as occupancy has apparently dropped significantly recently?

[Rocketeer]

I see a few media outlets are suggested that this new agreement is a further step towards the Mouse taking over ED SCA.

Surely if they were going to do that, they could have done it on Monday, or are they waiting for something like a new fiscal year?

[*TIMMIE*]

Such things are not that simple. You can see it as a chess game.