Disney to launch delisting offer for UTV Software on Jan 16

29 Dec,2011

By A Correspondent

 

US-based Walt Disney will launch an offer for delisting shares of media and entertainment firm, UTV Software Communications, from Indian bourses on January 16, 2012.

 

Walt Disney plans to delist about 1.22 crore shares, representing 29.96 per cent of UTV Software’s equity, and the offer price for the shareholders has been fixed between Rs835.03-1,000 a share, Walt Disney stated in an advertisement published on Wednesday.

 

The offer opens on January 16 and will close on January 20. Walt Disney currently holds an over 50 per cent stake in UTV Software.

 

In July this year, Walt Disney Co. had offered to buy out stakes held by public shareholders and other promoters of the company. The proposal, expected to result in FDI inflows of about Rs8,250 crore, has also been approved by the government.

 

Post-delisting, Walt Disney is likely to hold an 80.25 per cent stake in the company, if it successfully acquires the shares of all public stakeholders, while the remaining equity would be held by RS Group.

 

However, assuming that Disney acquires the shares of UTV Software’s other promoter as well, pursuant to a share-purchase agreement, Disney will secure a 100 per cent stake in the company.

 

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