Walt Disney gets approval to take over UTV

NEW DELHI: The Government has approved the proposal by the Walt Disney Company (Southeast Asia) Pte Ltd, Singapore, for increasing its shareholding on fully diluted basis to 100 per cent of UTV Software Communications.

The Cabinet Committee on Economic Affairs approved the proposal following the recommendation of the Foreign Investment Promotion Board (FIPB) in its meeting on 15 November.

Disney, which holds 50.44 per cent in UTV, will infuse around Rs 20.13 billion for acquiring the remaining stake in the Indian media conglomerate.

UTV Software had announced on 26 July that Walt Disney had offered to buy out stakes held by public shareholders and other promoters of the company.

It had been announced that subsequent to the buyout of the public shareholders, the company will be delisted from both the Bombay Stock Exchange and the National Stock Exchange. "The delisting proposal entails an offer to acquire all outstanding equity shares held by public shareholders in the company," UTV said in a filing to the Bombay Stock Exchange.

Upon the completion of the transactions, Rohinton Screwvala shall cease to be an employee of the company and instead be employed by The Walt Disney Company India as its managing director.

UTV operates in five verticals - broadcasting, games, motion pictures, digital content and television content.