Walt Disney Co. gets approval to buy 100% stake in UTV Software

It plans to delist the Indian company's shares from Bombay Stock Exchange and National Stock Exchange

BestMediaInfo Bureau | Delhi | December 9, 2011

The Cabinet Committee on Economic Affairs has approved the proposal of The Walt Disney Company (Southeast Asia) Pte Ltd, Singapore, for increasing its shareholding on fully diluted basis from 48.02 per cent to 100 per cent in UTV Software Communications Ltd pursuant to the Foreign Investment Promotion Board recommendation.

This approval is expected to result in FDI inflows amounting to Rs 8,250 crore.

Walt Disney Company plans acquire 100% stake in UTV Software Communications and delist the latter's shares from the Bombay Stock Exchange and National Stock Exchange. It holds 50.28 per cent stake in UTV Software Communications while 19.75 per cent is held by other promoters -- Rohinton Screwvala, Unilazer Exports & Management Consultants, Unilazer (Hong Kong) and Zarine Mehta. The total promoter holding in UTV Software Communications is 70.04 per cent as of end-September 2011. The delisting proposal has been approved by UTV Software Communications' board of directors at a meeting held on July 25, 2011.

UTV Software said the acquisition of shares from the public shareholders may be made at a price not exceeding Rs 1,000 per share and the delisting will be carried out in accordance with Sebi delisting norms.

On a consolidated basis, UTV Software Communications reported a net loss of Rs 28.86 crore in Q2 of 2011 compared with a net profit of Rs 40.18 crore in Q2 of 2010. Net sales rose 0.1 per cent to Rs 240.04 crore in Q2 of 2011 over Q2 of 2010.

Info@BestMediaInfo.com

Info@BestMediaInfo.com