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Transaction Effects

Euro Disney S.A.

The SCA

Effects
Risk
The reduction of
WDC’s equity from
100%-49%
The repayment to
Disney of (French
francs)
FRF2.8billion in
project cost
Increase in leverage;
FRF12.3 billion in
debts
and lease obligations
One of the largest
IPO of common stock
of a
company that had no
revenues or earnings
The creation of a
bewildering
ownership and
governance structure
for the project
The generation of a
cascade of French
Government
subsidies,
investments, and tax
breaks

Benefit

Risk

Benefit

Conseil de
Surveillance
Risk
Benefit

The associe
commandite
Risk
Benefit

ED S.N.C.,
Risk

Benefit

10 years 6. 10. Risk of Initial investment on public transportations if project failed . 9. Opportunity cost of the land usage if the project failed 2.000 per hectare Access to public transportation: 2 railroad stations. Cheap land purchase. 5.5% Short depreciation period. 7. FRF4. 1. 3. French Government Specified project schedule for Phase IA To guarantee a minimum amount of suburban rail system traffic To guarantee a minimum level of tax revenue Benefit 4. 5. TGV train Secondary roads: FRF200 million from government Low interest rate load. FRF 140.Master Agreement Project Owner Risk 1. 8.85% Low VAT. 2.8 billion. 7. car park and a bus station.