Mumbai, Feb. 18: The Walt Disney Company (Southeast Asia) today stumped up Rs 1,314 crore to raise its stake in UTV — a television production outfit — to 32.1 per cent from 13.7 per cent and acquired a 15 per cent stake in group company UTV Global Broadcasting Ltd.
It will pay Rs 805 crore for the stake in UTV and Rs 119 crore for the holding in UTV Global.
In a related development, the UTV board decided to issue 4.5 million warrants worth Rs 390 crore to UTV promoter Ronnie Screwvala and his associates.
UTV will issue 9.35 million shares to Walt Disney at Rs 860.79 per share which was determined under the regulations governing preferential allotments which must be made at a 5 per cent premium.
This partnership across movies, TV content, interactive and broadcasting endorses our leadership position in India and Southeast Asia and propels our already growing global story. Over the last year, we have learnt to work well together and the speed at which this collaborative deal was put together is testament to the strong working relationship we have built, said Ronnie Screwvala, founder and group CEO of UTV.
At the same time, UTV will invest another Rs 240 crore to pick up a 75 per cent stake in UTV Global.
The remaining 10 per cent will continue to be held by Ronnie Screwvalas promoter group. UGBL is the parent company for two wholly owned subsidiaries, Genx Entertainment and UTV Entertainment Television.
We are pleased with our initial investment in UTV, which has strong local brands and media properties that provide complementary growth platforms to Disneys existing branded efforts. The UTV management team is proven and well respected, and we look forward to continue to work with them, said Andy Bird, chairman of Walt Disney International and a board member of UTV.