afaqs!

Walt Disney to open delisting offer for UTV on January 16

By afaqs! news bureau , afaqs!, Mumbai | In Media Publishing | December 29, 2011
With this move, Walt Disney intends to delist UTV Software's 29.96 per cent equity (about 1.22 crore shares), wherein The Walt Disney Company (Disney) has offered to pay Rs 835.03-1,000 per share to the shareholders.

The US-based Walt Disney said in a newspaper advertisement on Wednesday that it will launch an offer to delist shares of UTV Software Communications from the Indian stock exchanges on January 16, 2012.

With this move, Walt Disney intends to delist UTV Software's 29.96 per cent equity (about 1.22 crore shares), wherein The Walt Disney Company (Disney) has offered to pay Rs 835.03-1,000 per share to the shareholders.

According to the advertisement, the offer will close on January 20, 2012.

In July this year, The Walt Disney Company had conveyed its intention to take full control of UTV Software Communications (UTV). It made an offer at a maximum price of Rs 1,000 per equity share to buy back the remaining 49.56 per cent equity shares.

Walt Disney currently owns 20,497,994 equity shares (50.44 per cent stake) in UTV Software.

Rohinton (Ronnie) Screwvala and Zarina Mehta together hold 8,053,480 equity shares, equivalent to 19.82 per cent stake in the company. This takes the aggregate promoter holding in the company to 70.26 per cent of its current paid up equity share capital.

Walt Disney had then offered a buyback proposal from the public shareholders and 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.

Post delisting, Disney expects to hold 80.25 per cent stake in the company, if it successfully acquires the shares of all public stakeholders. The remaining equity, meanwhile, will be held by UTV's promoter group (RS Promoters) - Ronnie Screwvala.

However, the advertisement further added that Disney will secure 100 per cent stake in the company. It can be therefore assumed that Disney will also acquire the shares of UTV Software's other promoter, following a share purchase agreement.

Search Tags