The French investment fund Charity & Investment Merger Arbitrage Fund – CIMA, which holds less than 1% of the share capital of Euro Disney, said on Monday it had filed an appeal against the decision of the French Financial Markets Authority (AMF) to authorize the takeover of the US parent unveiled in February.
While The Walt Disney Company has embarked on a complete takeover procedure of the capital of Euro Disney, French assest manger CIMA considers that the procedure was not conducted in the common interest of the shareholders.
The Walt Disney Company announced on the 20 February that they now owned up to 72.34% of the capital of Euro Disney S.C.A. as a result of capital increases made in three of its subsidiaries (EDL Holding Company, Euro Disney Investments, and EDL Corporation).
The next stage in the recapitalization of Euro Disney S.C.A. the mandatory tender offer (OPO) on all shares Euro Disney they do not possess opened on April 2 and was expected to run until to 24 April 2015. This has now been extended by the AMF until the Paris Appeal Court makes a ruling.
The Fund Charity & Merger Arbitrage Fund (CIMA) on 9 April 2015 filed an action for annulment before the Paris Appeal Court “against the AMF’s decision to declare conformity deposited on the public offer by the Euro Disney SCA Group Walt Disney Company,” according to a statement.
“This public offering completes a situation of abuse of power in Euro Disney, which is not managed in the common interest of its shareholders or even its own corporate interests,” according to the fund.
“All these actions appear likely to constitute the abuse of corporate assets offenses to the detriment of Euro Disney, presentation of inaccurate accounts and communication of false or misleading information. A complaint on these grounds was filed by CIMA with the national financial Parquet “, details the CIMA counsel, Mr. Julien Visconti.
The fund also says it plans in the coming weeks to launch an action in civil proceedings “for the return of hundreds of millions of euros improperly levied by the controlling shareholder in Euro Disney.”
On 17 February the shareholders of Euro Disney, meeting at the companies General Assembly approved the one billion euro recapitalize plan by nearly 95%. Euro Disney has previously experienced financial restructuring in 1994 and 2004.
Source: La Tribune