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Monday, December 8, 2008

Disney raises stake to 50 pc in UTV Software

Walt Disney Company (South East Asia) has raised its stake in UTV software to more than 50 % and has become the majority shareholder of UTV Software Communications. Walt Disney recently acquired about 20 % of UTV shares from the open market and increased its holding in the company to more than 50 %. Earlier, its shareholding was 37 %. This made Walt Disney the first Hollywood studio to have majority shares in an Indian entertainment company. The shareholding of UTV and Walt Disney in UTV Software Communications has increased to 83.25 %. In February, Walt Disney had invested $190 million in UTV Software and increased its stake from 14.85 % to 37.29 %. According to UTV sources, though Walt Disney is now a majority partner of UTV Software Communications, its equation in the company will remain unchanged. As per an agreement reached with UTV founder, Ronnie Screwvala, Walt Disney will not claim more than 3 seats it already has on the UTV Software 12-member board. Also, it will not use its voting rights till 2012, but may amend if needed. An industry source revealed that Disney might have taken advantage of the market slowdown to buy UTV software's 23 % additional shares in the open market at a cheaper rate and if this continues Walt Disney may look to delist UTV Software in some time nearby, giving an open offer to UTV's minority shareholders. Surely I foresee the great future of UTV Software ahead. 
Currently UTV trading at Rs. 227, maybe by or after 2012 Disney may offer delisting.

1 comments :

  1. Hi readers,
    As told earlier when Walt Disney bought stake, the exact is happening ....
    UTV SOFTWARE is going to consider delisting. The company got proposal from Disney to delist. Disney will make an open offer for UTV Software. Disney is holding 50.4% stake in UTV Software. Disney said that delisting price is of maximum Rs 1,000 per share.

    It was trading with volumes of 247,171 shares, compared to its 5-day average of 103,953 shares, an increase of 137.77%.

    ReplyDelete

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