The Cabinet Committee on Economic Affairs has approved Disney’s FDI Proposal to increase its shareholding from 50.44% to 100% in UTV Software Communications Limited. The press statement however, again mentions the current shareholding as 48.02%. It states that this approval is expected to bring in an FDI inflow of Rs 8250 crore. This FDI proposal was earlier sent by India’s Foreign Investment Promotion Board (FIPB) to the cabinet committee for approval since the proposed investment i.e. Rs 8250 crore was much higher than the threshold limit of FIPB, which currently stands at Rs 1200 crore.
Disney currently holds 20,497,994 equity shares of UTV, which constitutes 50.44% of the current paid up capital of the company. In July 2011, the company was looking to acquire 19.82% stake of the Indian media conglomerate UTV Software, currently held by UTVs promoter group (RS Promoters) – Ronnie Screwvala, Unilazer Exports and Management Consultants, Unilazer (Hong Kong) and Zarina Mehta – who holds 8053480 shares and thereby delisting the company by acquiring the rest 29.74% stake by buying out the publicly held shares at a maximum of Rs 1000 per share in the open market. Following this, the promoters and equity shareholders of UTV Software had approved the delisting of the company from the Bombay Stock Exchange and the National Stock Exchange, through a postal ballot.
The total deal is reportedly valued at around $390 million and is likely to be completed by early next year as noted by AFP. UTV currently owns businesses in films (UTV Motion Pictures), broadcasting (UTV Movies, Bindass, UTV Action, and UTV World Movies), Gaming (True Games, Ignition Entertainment and Indiagames) and Web and Mobile (UTV Interactive).
– Disney’s India FDI Proposal Sent To CCEA; Augere, 9X, What’s On India FDI Approved
– UTV Shareholders Approve Delisting
– Updated: Disney Looks To Buy UTV, Delist At Rs 1000 Per Share; $272.38M