Walt Disney to pay Rs 2,000 crore for 100 per cent stake in UTV

By afaqs! news bureau , afaqs!, New Delhi | In Media Publishing | July 27, 2011
The Walt Disney Company currently owns a 50.44 per cent stake in UTV Software Communications, while Ronnie Screwvala and Zarina Mehta together own another 19.82 per cent.

The Walt Disney Company (Disney) has conveyed its intention of taking full control of UTV Software Communications (UTV). The Walt Disney Company has made an offer at a maximum price of Rs 1,000 per equity share to buy back the remaining 49.56 equity shares.

Walt Disney currently owns 20,497,994 equity shares (a 50.44 per cent stake) in UTV Software. Rohinton (Ronnie) Screwvala and Zarina Mehta, together, hold 8,053,480 equity shares, which is a 19.82 per cent stake in the company. This takes the aggregate promoter holding in the company to 70.26 per cent of the current paid up equity share capital of the company.

Walt Disney has offered a buyback proposal from the public shareholders and the founder-promoters, and advised UTV Software Communications to delist the equity shares of the company from the Bombay Stock Exchange and the National Stock Exchange of India.

The de-listing proposal entails an offer to acquire all outstanding equity shares held by public shareholders in the company (Delisting Offer). The delisting offer shall be made by Disney in accordance with the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Delisting Regulations).

Post this buyout, Screwvala will cease to be an employee of UTV Software and instead be employed by The Walt Disney Company (TWDC India), a part of the Disney Group, as the managing director of TWDC India.

Screwvala shall be responsible for overseeing the Indian businesses of the companies owned and managed by the Disney Group, including, among others, the business of the company, going forward. Screwvala and TWDC India shall enter into an employment agreement in this regard.

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