This story is from February 19, 2008

Disney to raise UTV Software stake to 32%

TNN / Feb 19, 2008, 00:00 IST

Share

AA

Text Size

Small
Medium
Large

The Walt Disney company is set to increase its stake in UTV Software Communications to 32.1% with an investment of Rs 805 crore.

Disney to raise UTV Software stake to 32%

MUMBAI: In what is being touted as the largest foreign investment in the Indian media and entertainment space, the Walt Disney company is set to increase its stake in UTV Software Communications to 32.1% with an investment of Rs 805 crore.
Disney has also announced its intention to take 15% stake in UTV Global Broadcasting for Rs 119 crore. Together with Rs 390 crore warrants to be issued to Ronnie Screwvala's promoter group, the total deal size is pegged at Rs 1,314 crore.
The transaction will be done through a preferential allotment to the Walt Disney company and the promoters as per Sebi regulations.
TOI had written about Disney's intention to hike its stake in UTV in its issue on December 1, 2007. As a result of this investment, Disney's stake in UTV will go up from 13.7% to 32.1% on a fully diluted share capital basis. The number of shares expected to be issued as part of the transaction is 9,352,500 at a price of Rs 860.79, at a 5% premium.

Ronnie Screwvala, founder promoter and group CEO of UTV will consolidate promoters' stake with an issue of 4,532,000 warrants at the same price, investing Rs 390 core.
Disney will also invest Rs 119 crore for a 15% stake in UTV Global Broadcasting (UTVGB). UTV will also invest Rs 240 crore for a 75% stake in the same firm. The remaining 10% will continue to be held by Ronnie Screwvala's promoter group.
UTVGB is the parent company for its two wholly owned subsidiaries, Genx Entertainment and UTV Entertainment Television. Genx has launched two channels through the Bindass brand, while UTV Television Entertainment has just launched The World Movies channel. A Hindi movie channel is also on the cards.

End of Article

FOLLOW US ON SOCIAL MEDIA