Walt Disney investing around $200 Mn in UTV

By siliconindia   |   Wednesday, 20 February 2008, 17:50 IST
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Mumbai: With an intent to increase its stake to 32.1 percent in media and entertainment company UTV, Walt Disney has offered to invest $201.25 million in the company. The California based family entertainment and media enterprise, at present, has 13.7 percent stake in UTV. Disney will be making this investment through its subsidiary Walt Disney (Southeast Asia). As part of the transaction, 93.52 lakh shares at a price of Rs 860.79 each will be issued as part of the transaction. This is based on the preferential allotment pricing formula as per regulatory norms, with a five percent premium. Disney will also invest with UTV in UTV Global Broadcasting (UGBL) by acquiring a 15 percent stake worth Rs 119 crore (about $ 30 million). Ronnie Screwvala, founder-promoter and CEO of UTV, is also consolidating promoters' stake with an issue of 45.32 lakh warrants at the same price of Rs 860.79, investing $97.5 million. Walt Disney's investments in UTV and UGBL, together with the warrants to be issued to Screwvala's promoters group, makes this total deal size about $320.8 million. A company release said that the transaction will require a public announcement to all UTV shareholders.