In documents submitted this week to Hong Kong’s legislature (Legco) Disney has agreed to equally split the $1.41 billion (HK$10.9 billion) expansion and upgrade of the park, though it currently owns only 47% of the facility. The proposal reduces the burden for the Hong Kong government by some $45.2 million (HK$350 million.) Disney will also waive variable management fees for two financial years. In return the government’s ownership stake will fall from 53% to 52% and Disney’s stake increase from 47% to 48%.
The moves come after disquiet on the part of lawmakers that the park is moving further into loss and that the city is getting a bad deal. Legco is expected to discuss the proposals in a session on Saturday. … (read more)