Expansion financing news from RTHK (merged threads)

[mclubber]

Just come off the RTHK website:

FS to meet Walt Disney officials


The Financial Secretary, John Tsang, will discuss the latest expansion plans of the Hong Kong Disneyland with Walt Disney management. The meeting will take place on Friday during his trip to Los Angeles. The company faced trouble in raising funds to finance the expansion amid a tight credit market. Visitor numbers of the theme park have failed to meet its target since its opening in 2005.

[TimmyTimmyTimmy]

hahahah

...just close the park and give it another try somewhere else!

we get these kind of news once a week almost...

3 new e-tickets by 2011 and the park will start to live.

[Dustysage]

I really hope they do get the financing for expansion. However, they should fix their Disneyland Park first (but adding rides) BEFORE starting on a second gate or even a Downtown Disney.

The park is pretty, but it is beyond belief that they would open a park with so few attractions!

[Asa]

Blame Jay Rasulo for the small park and lack of a plan B. He simply never expected the lack of visitors and thus revenue stream needed for the expansion.

[hkdlfan]

This is no news for me. Ive been hearing the same news for over 2 years.

[Ride Warrior]

Build it (cheap) and they shall come (to the conclusion to go elsewhere). Another attraction-less gate would spell the end of HKDL.

Jay Rasulo should be forced to run around in a barefoot Goofy costume at the park until he changes his money grubbing, toe picking attitude.

[dland_lover]

*crosses fingers*


Hey- Disney has Scrooge McDuck, the richest duck in the world. Why can't they just tap into his funds?

[hkdlfan]

all the top guys working in WDC are scrooges themselves.

[ROBONICS95]

Another article from MarketWatch:

HONG KONG (MarketWatch) -- Hong Kong Financial Secretary John Tsang plans to meet with executives at Walt Disney Co. (DIS:21.91, +0.90, +4.3%) in Los Angeles Friday to discuss Hong Kong Disneyland's expansion plans, the government said Wednesday.

The planned high-level meeting between the two theme-park shareholders follows Disney's announcement last month that it would put the already-delayed expansion of the Hong Kong park on hold after failing to agree with the city's government on a cash injection.

Disney and the Hong Kong government have been in discussions over financing a second phase of Hong Kong Disneyland, which has been criticized for its small size and lack of major attractions since its 2005 opening.
Hong Kong Disneyland, which is 54%-owned by the government, is the smallest of Disney's theme parks; the company also has parks in the U.S., Japan and France.

At stake in the talks is the government's desire to keep its controlling stake in the theme park, given Disney's willingness to inject capital into the joint venture to fund the expansion.

Citing unnamed sources, the Hong Kong Economic Times reported Thursday that the government is open to reducing its stake in the park in return for Disney funding that would help expedite the expansion program.
The report said a likely option would be that Disney invests HK$7 billion for the expansion, cutting the government's stake to 51%.
Disney said earlier the expansion plans being negotiated involve increasing Disneyland's themed areas by a third of its current size.

[V1213]

According to the Government this meeting was fruitful:

Talks on Hong Kong Disneyland's expansion have made substantial progress, Financial Secretary John Tsang says.

Mr Tsang was touring the United States West Coast and met Walt Disney Parks & Resorts chairman Jay Rasulo today.

"I am happy to note substantial progress has been made in the negotiations. While a number of issues remain to be sorted out, both sides are committed to bringing the discussions to a successful conclusion in the near future," Mr Tsang said after the meeting.

Secretary for Commerce & Economic Development Rita Lau said in Hong Kong she was happy to hear the news.

"As far as I know, there were breakthroughs on a number of important issues. I am sure there will be solid plans very soon," she said.

Time will tell if this is real progress or the same stuff we've been hearing for years.

[keithlee83]

Originally Posted by V1213

According to the Government this meeting was fruitful:
Time will tell if this is real progress or the same stuff we've been hearing for years.

Good news for all hkdisneyland lovers！

[ROBONICS95]

Good news indeed:

Article - WSJ.com

HONG KONG (Dow Jones)--Hong Kong is close to reaching a deal with Walt Disney Co. (DIS) to expand the city's Disneyland park, a person familiar with the situation said Saturday, in an agreement that will allow the government to keep a controlling stake in the venture.

Disney and the Hong Kong government have been in protracted discussions over financing an expansion to the first phase of Hong Kong Disneyland, which is 54%-owned by the government and 46%-owned by Disney.

At stake in the talks is the government's desire to keep its controlling stake in the theme park, given Disney's willingness to inject capital into the joint venture to fund the expansion.

The person familiar with the situation said Saturday that the sides are very close to a deal. As part of the proposed agreement, Disney will finance the expansion project, while the government will convert earlier loans to the joint venture into equity in order to keep a controlling stake.

The person said Hong Kong Financial Secretary John Tsang met with senior Disney executives in Los Angeles on Friday to discuss the expansion plans, though no agreement was signed during the meeting.

The person declined to provide financial figures for the expansion, but said construction of the expansion will begin soon after the deal closes.

The Hong Kong Economic Times reported Thursday that a likely option would be Disney investing HK$7 billion for the expansion, reducing the government's stake to 51%.

Hong Kong Disneyland is the smallest of Disney's theme parks, and has been criticized for its size and lack of major attractions since its 2005 opening. The company also has parks in the U.S., Japan and France.

Disney said earlier the expansion plans being negotiated involve increasing Disneyland's themed areas by a third of its current size.

Disney officials couldn't immediately be reached for comment.

[mister_peterman]

$7 billion? Isn't the DCA expansion only $1.something billion? That sounds like a rather impressive amount of money to do some fun things!

[iluvHKDL]

Originally Posted by mister_peterman

$7 billion? Isn't the DCA expansion only $1.something billion? That sounds like a rather impressive amount of money to do some fun things!

That is HK$7 billion

[hkdlfan]

Originally Posted by iluvHKDL

That is HK$7 billion

I just hope they build HIGH quality rides and scenery for the new proposed themed lands with this money.