HONG KONG -(Dow Jones)- The Hong Kong government has reached a deal with Walt Disney Co. to expand the city's Disneyland theme park, and will present the plan to lawmakers next week, people familiar with the situation said Thursday.
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.
Disney is willing to fully fund the expansion, but talks have been complicated by the government's desire to keep its controlling stake in the theme park.
As part of the deal, 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, a person familiar with the situation said earlier.
The Hong Kong Economic Times reported Thursday that Disney would invest HK$7 billion on the expansion, reducing the government's stake to not less than 51%.
Citing unnamed sources, the report said the government will present the plan in a legislative meeting next Tuesday.
Hong Kong Disneyland wasn't immediately available for comment.
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06-25-2009, 09:33 AM #1
Hong Kong, Walt Disney Reach Deal On Hong Kong Disneyland Expansion-Sources