Disney to buy out promotors, delist UTV
Walt Disney Co, the largest shareholder in UTV Software Communications Ltd with 50.44% stake, has proposed to buy the rest of the stake in the company in a deal valued around Rs 2,000 crore.business Updated: Jul 26, 2011 21:51 IST
Walt Disney Co, the largest shareholder in UTV Software Communications Ltd with 50.44% stake, has proposed to buy the rest of the stake in the company in a deal valued around Rs 2,000 crore.
The offer to buy out stakes in the media and entertainment firm saw the latter’s scrip jump 10% during the day reaching Rs 1,050 from the opening price of Rs 949 to eventually close the day at Rs 950.45, a rise of 6%.
After the buyout of the public shareholders by Walt Disney (South East Asia), a promoter group firm, UTV Software will be delisted from both the Bombay Stock Exchange and the National Stock Exchange.
A company spokesperson confirmed the development but did not elaborate.
UTV’s board of directors has approved the delisting offer and acquisition of shares from the public at a price not exceeding R1,000 per equity share.
After the delisting, Walt Disney will also acquire 80,53,480 equity shares representing 19.82% of the current paid-up equity share capital from other promoters of the company at the same price as discovered pursuant to the delisting offer.
The company’s other promoters include Rohinton Screwvala, Unilazer Exports and Management Consultants Ltd, Unilazer (Hong Kong) Ltd and Zarina Mehta.