Walt Disney to increase stake in UTV to 32.1 pc

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Mumbai, Feb 18: Walt Disney will increase its stake in UTV, a private sector broadcaster, to 32.1 per cent by picking up 17.18 per cent additional shares with an investment of Rs 805 crore.

The board of directors of UTV Software Communications, who met here today, approved the proposal to issue 93.5 lakh equity shares to Singapore-based Walt Disney Company at Rs 860.79 per share. Disney will invest Rs 805 crore to hike its stake from 14.85 per cent, by holding 34 lakh shares, UTV informed BSE.

The board also approved issue of 43.5 lakh warrants, convertible into 43.5 lakh shares to a promoter company, Unilazer Exports and Management Consultants, at Rs 860.79 per warrant. The total investment by Unilazer in the Company would be around Rs 390 crore, a release said.

Unilazer Exports along with its promoters presently holds 30.67 per cent of the equity share capital of the company through 70.2 lakh shares and 19.4 lakh warrants.

Ronnie Screwvala will be chairman and managing director of the company for two successive terms of five years each, the release added.

Disney, Unilazer and certain other promoters of the company would be required to make an open offer to the public shareholders of the company.

UNI

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