In the run-up to Disney‘s acquisition of UTV Software‘s publicly held shares, the promoters and equity shareholders of UTV Software have approved the delisting of the company from the Bombay Stock Exchange and the National Stock Exchange, through a postal ballot. In a filing to the BSE, the company informed that 2,57,02,152 votes were cast in favour of the resolution, constituting 99.61% of the total valid votes cast, while 99,738 votes were cast dissenting the special resolution.
Following the delisting, Disney will acquire the publicly listed shares at a maximum of Rs 1000 per share. Around 1,20,85,409 shares, or 29.74% of UTV’s total shareholding were publicly listed, the cost of which would be Rs 1208.54 crore (approximately $272.38 Million), if each share was acquired at Rs 1000. However Disney has clarified that this is what the company views as an attractive price for the Public shareholding, and that this is neither the maximum price, nor is it an offer to acquire the complete shareholding.
Disney will now look to acquire the remaining 19.82% shares currently held by UTVs promoter group (RS Promoters) – Ronnie Screwvala, Unilazer Exports and Management Consultants, Unilazer (Hong Kong) and Zarina Mehta – who hold 80,53,480 shares, constituting 19.82% of the current paid up equity capital of the company. Disney has not disclosed how much it is willing to pay for the 19.82% held by RS Promoters.