-By Patrick Frater

Hong Kong—Disney and the Hong Kong government have agreed a plan to expand the struggling Hong Kong Disneyland theme park.

The new development will expand the number of "lands" from three at present to seven, and the project will  cost HK$3 billion-$4 billion ($387 million-$515 million).

The deal comes after many months of negotiations and also rejigs the four-year-old park's ownership structure.

While Disney will pay for the new construction, the Hong Kong government will convert some HK$6 billion ($775 million) of its existing loans to the park into equity. Nevertheless, its share stake in the park will drop by a few percentage points from its current 57 percent, although the government will retain majority ownership.

Details of the new deal are likely to be unveiled more fully next week after the plans are discussed by a special panel of Legco, Hong Kong's parliament.
—Nielsen Business Media