Walt Disney is set to purchase a significant majority in UTV Software Communications Ltd, with the aim of delisting the company in a deal potentially valued at $454 million or Rs2,014 crore, in a move that will perceive the US entertainment giant expand its charisma in Bollywood, media and gaming, the reports said.
The California-based company, with a 50.44% stake in UTV Software, said in a statement it would acquire public shareholders at a price not beyond Rs1, 000 per share, an 11%premium to Monday’s stock closing price of Rs901.8. With this takeover, Walt Disney would expand full control over 5 businesses.
The company’ stock mounted 5.39% to Rs950.45, on the BSE yesterday, subsequent the news of the takeover, one of the biggest in the history of Indian media and entertainment industry.
The company control through a number of subsidiaries, including movie production under UTV Motion Pictures, India games, and UTV Global Broadcasting that broadcasts entertainment and movie channels, all of which would outline part of Walt Disney’s Indian unit with the achievement of the transaction.
According to the reports, it would also acquire the 20% stake held by promoter Rohinton (Ronnie) Screwvala and his links if it picked up enough shares to delist the company.