Shareholder - Idiot Guide to Required Action?

[Jonjo]

Following an appeal filed on 9 April 2015 in the Paris Court of Appeal by CIMA, the AMF – Autorité des Marchés Financiers (Financial Markets Authority) announced today in document No. 215C0446 that the Euro Disney S.C.A OPA will be extended.

The OPA was scheduled to be completed on 24 April 2015. Pending the decision of the Paris Court of Appeal on the stay of application, the tender offer had been extended pursuant to Article 231-34 of the General Regulations.

New information will be published to shareholders to promote the modified calendar.

 

[Jonjo]

The French investment fund Charity & Investment Merger Arbitrage Fund – CIMA, which holds less than 1% of the share capital of Euro Disney, has filed an appeal against the decision of the French Financial Markets Authority (AMF) to authorize the takeover of Euro Disney by the US parent TWDC.

Phase 3 of the recapitalization process is now on hold until the French Court of Appeal makes a decission. In the mean time the AMF has extended the deadline for exisiting shareholders to sell their shares at the tender offer to Euro Disney Investments.

More info here.

 

[cherrymarzipan]

I'm sorry, I don't understand anything on that link, could you give me an idiot's guide version please? I bought in earlier in the year and had been wondering whether to sell some now but I don't understand the pros and cons... or even if I can now (and Halifax have a cheap trading day today too).

 

[cherrymarzipan]

The French investment fund Charity & Investment Merger Arbitrage Fund – CIMA, which holds less than 1% of the share capital of Euro Disney, has filed an appeal against the decision of the French Financial Markets Authority (AMF) to authorize the takeover of Euro Disney by the US parent TWDC.

Phase 3 of the recapitalization process is now on hold until the French Court of Appeal makes a decission. In the mean time the AMF has extended the deadline for exisiting shareholders to sell their shares at the tender offer to Euro Disney Investments.

More info here.

Do you know when shareholders can sell all or part of their shares at the tender offer? I rang the Halifax today and was told that the two options are not up yet and yet the revised deadline is close?

 

[Jonjo]

You can sell your shares to EDL Investments now. The revised dead line has been extended by the AMF due to the legal action being taken by CIMA in the French Court of Appeal against the the AMF and Disney. The deadline has been extended until the Court of Appeal makes it's decission.

 

[Twinkbelle]

I'm a bit lost. Do I have to sell?

 

[Jonjo]

Only if you want to, your under no obligation to sell your shares under the tender offer.

 

[HFJohnson]

Does anyone have any up to date information on this? I elected to sell most of my shares however I've checked my Halifax account today and I now only have 100 shares left but I haven't yet received any money for the other 900. Does anyone know when the payment should be made?

 

[SWofDisorder]

Stupid question: I own 20 shares but that is all. My salon Mickey card has expired. Can I still get grandfather in with my 20 share, or 100? I am not going to buy 900.

 

[HFJohnson]

Just wanted to bump this up in case anyone in the know has any new information about the tender offer. I submitted my request to sell most of my shares back in May but still don't see any sign of this being processed. Does anyone know when this might go through? Thanks

 

[Jonjo]

The tender offer is on hold due to the legal action against the AMF by CIMA.

We will know more once the Court of Appeal in Paris announces their decision on the case in September.

If CIMA are unsecsessful I expected they will refer the case to the European Courts which could cause further delays in the process.

Here is an article I wrote on my blog about the situation.

CIMA Court of Appeal decision to be announced on 8 September 2015.

The Paris Court of Appeal will announce their decision on the case filed by the French hedge fund Charity & Merger Arbitrage Fund (CIMA) against The Autorité des marchés financiers (AMF) [the French Financial Markets Authority] on 8 September 2015.

The legal action was filed in the Court of Appeal on 9 April 2015 by CIMA against the decision made by the AMF to authorize the Euro Disney cash tender offer which is part of the recapitalization plan by The Walt Disney Company (TWDC) for the financially troubled Disneyland Paris resort.

According to CIMA the tender offer "completes an obvious situation of abuse of power in Euro Disney, which is not managed according to the common interest of its shareholders or even its own social interest. "

The AMF had previously indicated that the cash tender offer was scheduled to operate between the 2 April to 24 April 2015, but has been extended pending the decision of the Court of Appeal.

This extension enables Euro Disney shareholders the opportunity of selling their shares to TWDC under the offer at 1.25 euros per share until the courts decision in September.

At a hearing held on Thursday 4 June 2015, Mr. Julien Visconti representing CIMA, which owns less than 1% of Euro Disney said in a brief to the Court of Appeal and sent to AFP press agency. "that the offer is the culmination of a long process of abuse of power that has allowed The Walt Disney Company to capture more than 1.5 billion of Euro Disney, or three-quarters of the two billion in cumulative losses since the beginning of the project ".

He continued "that the 'ridiculous' prices offered as part of the offer (1.25 euros per share), not take into account the fair value of Euro Disney property rights, and is barely a third of the net assets reassessed", according to Mr. Visconti citing a legal expert report.

Following the capital increase TWDC now own 78.90% of Euro Disney up 39.12% from it's original holding of 39.78% before the recapitalization started.

In April, the management of Euro Disney stated that the allegations made by the French hedge-fund CIMA were false and unfounded.

TWDC bailed out Euro Disney in October 2014 by injecting more than a billion euros into the troubled theme park.

Crippled by debt since its opening in 1992, Euro Disney has already experienced financial restructuring in 1994 in 2004.

 

[Jonjo]

Stupid question: I own 20 shares but that is all. My salon Mickey card has expired. Can I still get grandfather in with my 20 share, or 100? I am not going to buy 900.

Depends on when you purchased your shares. It it was before the last recapitalisation in 2004 you might be grandfathered in, but you will need to check with the club.

If after 2004 you will need 100 shares to become a member if you want to renew. Many holders of 20 shares took advantage of the €1 share tender offer to buy the additional 80 shares they required to renew.

You could buy the additional shares you need to renew on the open market. They closed on Friday at €1.32 each.

 

[netimka]

Stupid question: I own 20 shares but that is all. My salon Mickey card has expired. Can I still get grandfather in with my 20 share, or 100? I am not going to buy 900.

I read it here or on trip advisor, dont remember now , but someone just bough extra 180 shares as they are cheap now and just send renewal form with confirmation of owning 200shares and got new card no problem
hth

 

[Jonjo]

The club are accepting renewals, even from lapsed members.

It's just new applications that have stopped until after the recapitalisation process is completed.

 

[HFJohnson]

Thanks for the update.

Am I right in thinking then that there's nothing I can do until the Court of Appeal makes its decision and that I'm just going to have to wait to get sale proceeds from my shares? Could I cancel my decision and sell my shares for the going rate?

 

[katiesam]

Thanks for the update.

Am I right in thinking then that there's nothing I can do until the Court of Appeal makes its decision and that I'm just going to have to wait to get sale proceeds from my shares? Could I cancel my decision and sell my shares for the going rate?

I've been wondering this too. The share price has been around €1.32/€1.33 every time I've checked lately, which is obviously higher than the €1.25 that we were supposed to be getting from selling them under the tender offer.

Although I believe selling them under the tender offer incurs no fees whereas I assume selling them for the going rate would incur fees? If so, I don't know whether there would be any difference in the final sum we would receive.

 

[Jonjo]

Best to speak to your finacial advisor or share broker on that one, they will be able to give you the best advice. It's what you pay them for.

 

[SWofDisorder]

I am now 3 weeks waiting for my shareholder card. How long should it take? I was very pleased that they issued a temporary paper for me to use while on our last visit.

 

[Jonjo]

When I renewed in April mine took 4 weeks to arrive.

 

[Tinkerbell8480]

Can someone help me please. I purchased 20 shares in 2009. I haven't done anything with the Halifax share dealing notifications so am I right in thinking I still own 20 shares? If so do I need to buy 80 more to be able to renew my expired shareholders card?
I mainly use the car for the disneystore discount so need to decide if it's worth the £76 to buy 80 more shares? Can anyone confirm if my understanding is correct?