Walt Disney Co said on December 28, 2011 that it would launch an open offer on January 16, 2011 for the shares it does not already own in UTV Software Communications Ltd. The offer closes on January 20.
Walt Disney, which controls 50.4 per cent of UTV, plans to delist about 1.22 crore shares, representing 29.96 per cent of UTV Software’s equity, and the offer price for the shareholders has been fixed between Rs 835.03 and Rs 1,000 a share, Walt Disney said in a newspaper ad published on December 28, 2011.
At the top end the offer represents a premium of 1.6 per cent to UTV’s closing price on Tuesday, December 27, 2011 and would cost Disney about $384 million for the buyout. Shares in UTV, valued at $761 million, were trading up 1 per cent at Rs 993.65 in a weak Mumbai market.
In July 2011, Walt Disney Co had offered to buy out stakes held by public shareholders and other promoters of the company. The Government has also approved the proposal, which is expected to result in FDI inflows amounting to about Rs 8,250 crore.
Post-delisting, Walt Disney is likely to hold an 80.25 per cent stake in the company if it successfully acquires the shares of all public stakeholders, while the remaining equity would be held by RS Group.
However, assuming that Disney acquires the shares of UTV Software’s other promoter as well, pursuant to a share purchase agreement, Disney will secure a 100 per cent stake in the company, the advertisement said.
Source: Reuters and PTI