Disneyland Paris share value drops 20%

[ThBa]

I really do not know what will happen to the shareholder club in the future.

I´m happy that I renew my shareholders membership just three weeks ago and that my new card is in the post (hopefully).

There will be new conditions for the shareholder club and I guess they will increase the minimum shares.

Today if you have 100 you need to buy at a ratio 9:1 so you have to spend 900,- € if you will go with them.

I will keep my 111 shares (!!!!) and hope that there will be any arrangement for the actual shareholder members.

If not....I will sell my shares, use the new shareholder card for the next 2 years and will get me a Fantasy AP for the discount (which are higher by the way).

 

[torsie24]

I've decided to sell my shares. It'll be for a loss compared to what I paid. But I got a lot of mileage out of the discounts so it's been fun.

The money I get back can be spending money for our trip.

 

[Disney Princesses LW]

I'm in the same position I need to buy more as mine needs renewing however i could only just justify buying the additional 80 shares

 

[DLPDreams]

I think the issue for those needing to renew, or buy new shares is what will become of the Shareholder's Club? Most people buy them for the discount in DS plus the SC perks, as financially a return over the next 10 years is unlikely.

I am thinking that they'll increase eligibility to something like 1000 shares, if they keep the SC at all. I really can't see them keeping it at 100 shares tbh. TWDC want serious investors who are willing to hold up large amounts of cash in their shareholding - however, I do feel that many 'serious' investors wouldn't look twice at their shares as they don't produce a dividend and don't produce a profit. I can only think the Prince really loves Disney or has so much money that he doesn't mind not getting a return (probably the case!) . TWDC do not offer SC perks to their current shareholders and I think DLRP may follow suit once it has a majority rule.

I have decided not to buy the additional 80 now, as, as I said above, I think the goalposts will change and it will affect quite a few people (they may take it back to a certain date for eligibility but who knows when that will be - clearly they are wanting to price out the majority of smallholders). Having said that, to contradict myself, if they allow me to purchase 180 shares at 1 euro each next Spring, AND still be eligible for the SC then I may reconsider. But, I think it's a case of waiting for the cards to be laid on the table. You could gamble and buy the additional shares now hoping that when (or if) the SC eligibility criteria adjusts, that you'll just make it - but it is a gamble and not financially justifiable for me at the present time.

Having said all that, I'm hanging onto my 20 shares for now . If I sell them next Spring at a loss then really I haven't lost anything anyway - as Torsie says, they have more than paid for themselves in the trips I have had and DS discount I have had over the last few years When all is said and done though, is nice to 'own' a piece of the magic, but financially, for me, it won't make sense if SC perks aren't included.

 

[torsie24]

Having said that, to contradict myself, if they allow me to purchase 180 shares at 1 euro each next Spring, AND still be eligible for the SC then I may reconsider. But, I think it's a case of waiting for the cards to be laid on the table.

This is my dilemma and why I haven't yet sold my shares....

But I can't see them not upping the minimum share criteria.

Urgh it's tough!


ETA - Just logged in to sell them. Bad numbers!

Quantity 20

Avg Cost Per Share (p) 417.35

Latest Price 243.307

Change -174.04

Profit/Loss -£34.81 -41.70%

Nice.....


So with the £12.50 commission I'm going to be getting £35.58 back.

I might hold fire until they have a fee free day (if they do those anymore.)

 

[Jonjo]

For those with only 10 or 20 shares it will be a good opertunity to buy the extra 90 or 80 you need to rejoin the Shareholders Club as you will only need to spend 90 or 80 euros to do so with the 1 euro per share investment offer.

 

[torsie24]

For those with only 10 or 20 shares it will be a good opertunity to buy the extra 90 or 80 you need to rejoin the Shareholders Club as you will only need to spend 90 or 80 euros to do so with the 1 euro per share investment offer.

Except I bet I buy 180 shares, so spend £150 and then get told I'm only eligible to be amemeber for a year unless I own 1000 shares.

Which is basically what happened to me last time. I joined the club adn then found out if I wanted to stay in it I'd need an extra 80 shares.

I have bad timing with these things!

 

[DLPDreams]

Except I bet I buy 180 shares, so spend £150 and then get told I'm only eligible to be amemeber for a year unless I own 1000 shares.

Which is basically what happened to me last time. I joined the club adn then found out if I wanted to stay in it I'd need an extra 80 shares.

I have bad timing with these things!

Yep. I am with you. I do think they will increase the share eligibility and if you think, those that currently have 100 shares, if they buy the 'extra' as per the 9 to 1 offer, they'll be around 900 shares won't they? I think this is where they will set the criteria around tbh.

TWDC want rid of small shareholders. They will do what they need do get what they want. I think the SC eligibility will either change or it will go.

Jonjo - I get your point, and this is what I will do if they do offer and don't change the criteria, but honestly, I can't see it because of the above point!

It's a wait and see game!

Torsie - not sure where your shares are but Halifax still do fee free dealing days. At £30+ value, I'm sure most will hang on to them and wait and see. The irony of it all is, I was almost set (well, dithering a bit as usual!) to buy shares earlier this week and then of course I read about the announcement on Friday night, which made me hold off! So, I too suffer from bad timing .

 

[Jonjo]

As it comes nearer to the vote on the proposal I expect we will find out more about what is going to happen to the Shareholders club.

What do the other shareholders think about the recapitalization proposal by TWDC are you going to vote in favour of it?

I see that both Saudi Prince Alwalee and the independent investment management company Invesco Ltd have refused to comment on the proposal.

 

[DLPDreams]

As it comes nearer to the vote on the proposal I expect we will find out more about what is going to happen to the Shareholders club.

What do the other shareholders think about the recapitalization proposal by TWDC are you going to vote in favour of it?

I see that both Saudi Prince Alwalee and the independent investment management company Invesco Ltd have refused to comment on the proposal.

I saw that too - about the Prince that is. I don't know if it's odd or not as I'm not sure he strikes me as someone who would make an official announcement when so much is still up in the air iyswim . He has clearly been well briefed (or his management have) and he will clearly know more than us I'm sure! Invesco is another ballgame. Not sure what to think tbh - it strikes me as odd.

I really don't know what else they can do? They can't carry on in the situation they are in - it's untenable. But as you rightly said in an earlier post, are they just pushing the problem back to 2024? Perhaps they are hoping with greater TWDC control and direction, they can turn the park around in that time and so it won't be an issue in 2024?

 

[Jonjo]

I saw that too - about the Prince that is. I don't know if it's odd or not as I'm not sure he strikes me as someone who would make an official announcement when so much is still up in the air iyswim . He has clearly been well briefed (or his management have) and he will clearly know more than us I'm sure! Invesco is another ballgame. Not sure what to think tbh - it strikes me as odd.

I really don't know what else they can do? They can't carry on in the situation they are in - it's untenable. But as you rightly said in an earlier post, are they just pushing the problem back to 2024? Perhaps they are hoping with greater TWDC control and direction, they can turn the park around in that time and so it won't be an issue in 2024?

The one of the last things Gas did as CEO was to fly over to visit Prince Alwalee. He has saved the park once and has seen no re-turn on his investment. Will he invest again? The 10% investment he as in DLP is pocket change to him, but he is very influential and the markets will follow his lead.

Invesco hold 5.01% what they do is anyones guess.

But I can see the aim of all of this is to allow TWDC to buy enough shares to put get them in the posisition of holding 51% of the stock. As this is all they need to be in control.

 

[DLPDreams]

The one of the last things Gas did as CEO was to fly over to visit Prince Alwalee. He has saved the park once and has seen no re-turn on his investment. Will he invest again? The 10% investment he as in DLP is pocket change to him, but he is very influential and the markets will follow his lead.

Invesco hold 5.01% what they do is anyones guess.

But I can see the aim of all of this is to allow TWDC to buy enough shares to put get them in the posisition of holding 51% of the stock. As this is all they need to be in control.

Who knows? We can only assume right now. Whatever, TWDC will get the majority shareholding and take control. Honestly, in some ways, I'm surprised they haven't done it earlier!

 

[Jonjo]

I think they just kept DLP on the back burner, but with the financials looking so gloomy they had to do something. It was nice to see them being so honest for once and finally coming to terms with the true finicial situation the resort is in. It's like 1994 all over again, but this time with TWDC making the demands and not the banks.

 

[Jonjo]

Members of APPAED - the Association of Small Euro Disney Shareholders are worried about the consequences of the proposed recapitalization of the Euro Disney Group.

They had a meeting with Mark Stead, Chief Financial Officer on the 7th October to explain their worries and it was suggested during their meeting that a Small Shareholder should join the Supervisory Board of Euro Disney.

Accordingly, and in order to represent the Small Shareholders and defend their interests Edith ZEMIROU, President of APPAED has put herself forward as a candidate for the office of Member of the Supervisory Board.

 

[Disney Princesses LW]

For those with only 10 or 20 shares it will be a good opertunity to buy the extra 90 or 80 you need to rejoin the Shareholders Club as you will only need to spend 90 or 80 euros to do so with the 1 euro per share investment offer.

I am thinking of doing just this
How do I purchase at this price

 

[Jonjo]

Euro Disney will be releasing more information about this nearer the time. If the resolution is passed.

You could always take full advantage of the opportunity, and buy the extra shares you need to join the shareholders club, at 1 Euro each, join the club, then sell them to TWDC at 3.46 euros.

You will see a bit of a profit then.

 

[DLPDreams]

The thing is this, I don't think they'll offer the SC with this euro share offer. I think if you buy shares at that point they'll up the eligibility criteria to nearer 1000 shares. No proof on this but it's my gut feeling. They don't want small shareholders so allowing this to happen doesn't help them. I may be wrong though. We'll have to wait and see I guess!

 

[ThBa]

The thing is this, I don't think they'll offer the SC with this euro share offer. I think if you buy shares at that point they'll up the eligibility criteria to nearer 1000 shares. No proof on this but it's my gut feeling. They don't want small shareholders so allowing this to happen doesn't help them. I may be wrong though. We'll have to wait and see I guess!

That´s my opinion too.

But if they will do so they have to give more privileges to the shareholders.

Why "only" 10% discount at shops with your shareholder card and 20% with a Dream AP ?

I don´t want to buy more shares for 900,- € (if you have 100 right now) just to get less discounts than a "normal AP holder".

 

[DLPdaft]

shareholders discount on shopping and table/buffet service meals is still a straight 15% isn't it? So you lose out a bit on the shopping discount compared to a Dream AP holder, but you gain on the table/buffet service discount.

 

[ThBa]

You are right...sorry...15% with shareholder card.