Disney hikes stake in UTV to 32%

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Mumbai, Feb 18: The Walt Disney Company (South East Asia) (TWDC), a subsidiary of Walt Disney Company, increased its stake in UTV from 14.9% to 32.1% by investing Rs 805 crore. UTV will sell 9,353,500 shares, at Rs 860 per share, based on Sebi preferential allotment pricing formula with around 5% premium. The deal is non-exclusive.

In addition to this, Disney also picked up 15% stake in UTV Global Broadcasting Ltd (UGBL) for about Rs 119 crore. UTV will now own 75% stake in UGBL and will invest Rs 240 crore. The promoter group will hold the rest 10% stake. The broadcasting venture recently launched three channels – Bindass, Bindass Movies and UTV World Movies and is slated to launch UTV Movies (Hindi movie channel) on February 26 and UTV I (English business news channel) in March. The broadcasting venture needs an investment of about Rs 800 crore out of which the recent deal raised about Rs 359 crore. The company is looking at other options to raise the rest of the money. It is also looking at debt market for funds.

Ronnie Screwvala, CEO, UTV, said, “We went through a number of options and finally secured the best deal for our shareholders. This deal is a substantial landmark in the Indian media industry. And, it only proves that Disney is willing to back local know how.”