Disney increases its stake in UTV to 32.1%

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New Delhi, Feb 18 (UNI) The Walt Disney Company (Southeast Asia) Pte Ltd (TWDC), a subsidiary of The Walt Disney today said it has increased its stake in UTV Software Communications Limited (UTV) to 32.1 per cent from the current 13.7 per cent.

At the same time TWDC will also invest with UTV in UTV Global Broadcasting Limited (UGBL) by acquiring a 15 per cent stake worth Rs 119 crores.

TWDC's investments in UTV and UGBL, together with the warrants to be issued to Ronnie Screwvala's Promoter Group, of Rs 390 crores after exercise, makes this total deal size about Rs 1,314 crores, according to a company statement.

The transaction will be done through a preferential allotment to TWDC and the promoters as per the SEBI regulations will require a public announcement to all UTV shareholders,it added.

As a result of this investment, TWDC's stake in UTV will go up from 13.7 per cent to 32.1 per cent on a fully diluted share capital basis.

The number of shares expected to be issued as part of the transaction is 9,352,500 at a price of Rs 860.79 based on SEBI preferential allotment pricing formula with five per cent premium.


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