Disney to hike stake in UTV, invest Rs 805cr

The board of directors of UTV Software Communications, which met on February 16, approved a proposal to issue 9.35 million equity shares to The Walt Disney Company (Southeast Asia) at Rs 860.79 per share.According to a release issued by UTV to the BSE today, Disney will invest Rs 805 crore to hike its stake from 14.85% (by holding 3.40 million shares).

The deal is subject to the approval of shareholders and all regulatory approvals "including but not limited to the approval of the Foreign Investment Promotion Board for the subscription of equity shares by Disney in the company,"the release added.

The board also approved issue of 4.35 million warrants, convertible into 4.35 million 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," the release added.Unilazer Exports along with its promoters presently holds 30.67% of the equity share capital of the company through 7.02 million shares and 1.94 million warrants.

Related Story:Walt Disney on prowl for Indian acquisition

Read more in The Business Standard article.

Walt Disney on prowl for Indian acquisition

It could be the mother of all deals in the media and entertainment sector in India. And it involves none other than global media and entertainment giant Walt Disney.A year after Disney bought a 14.85% stake in UTV,it is reported that Disney is on the prowl again.

As for names, sources said that it could possibly be UTV because Walt Disney already has 14.85% stake in UTV which they bought last year for Rs 65 crore and that they maybe interested in hiking that stake. If they do want to hike the stake, they would have to buy it from the promoters and the promoters, led by Ronnie Screwvala, have 30% stake in UTV. Out of this 17% is locked in which means that technically they can sell 13% in UTV to Walt Disney.

Read more in The Moneycontrol article.