€253m for Euro Disney revamp

Euro Disney, the theme-park operator, has succeeded in raising €253.3 million to fund three new attractions and spruce up its appeal to visitors.

The French company had sought to raise money for the expansion through a rights issue.

Yesterday, it said this share offer had been oversubscribed by about 9 per cent.

The offer signals the end of a financial restructuring that was designed to ease the pressure of its debt burden and allow it to invest €240 million in new attractions to pull in more first-time visitors.

Next year, it will unveil a new ride at its Disneyland Resort Paris based on the Buzz Lightyear character in the Toy Story films.

In 2007, it will expand the neighbouring resort, Walt Disney Studios Park, targeting families with younger children.

In 2008, it will unveil the "Tower of Terror" - a ride based on a plunging elevator that is already a feature at Walt Disney World in Florida, and Disneyland in California.

The company is launching a new Space Mountain ride in April, which was funded with existing resources.

Euro Disney shareholders approved the rights issue in December as part of a debt restructuring - its second in a decade.

Mr Jeffrey Speed, chief financial officer, said the response to the rights issue was "a vote of confidence in the company's growth potential and strategy".

After the rights issue, Walt Disney, the entertainment group, should continue to own about 40.6 per cent of Euro Disney.

However, the shareholding of Prince Alwaleed bin Talal, the Saudi investor, is expected to decline from 15.9 per cent to about 10 per cent.