UTV Software Communications Ltd, the integrated media group with business interest in motion pictures, broadcast, TV content, and animation and gaming, has announced the closure of its preferential allotment to The Walt Disney Company (South East Asia) Pte Ltd. With this, the promoter group and Disney will have equal stake of 32.10 per cent in UTV.
This was approved on May 9, 2008, where the committee allotted 9,352,500 equity shares of Rs 10 each at an issue price of Rs 860.79 per equity share aggregating to around Rs 8050 million. The promoter group has also subscribed to 4,532,000 warrants at the same issue price.
This investment further establishes The Walt Disney Company's entry into the Indian market and complements the fast-growing Disney-branded businesses and long-held joint venture in ESPN-STAR Sports. As a result of this investment, The Walt Disney Company's stake in UTV will go up from 13.7 per cent to 32.1 per cent on a fully diluted share capital basis.