Screwvala still holds rights to buyback 20% from Disney

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Mumbai, Nov 23 : After Walt Disney’s successful acquisition of 59.94% stake in UTV Software in the open offer, Ronnie Screwvala, UTV group CEO, told FE that he still holds the rights to buyback 20% from Disney anytime he wishes to. Ronnie Screwvala and Walt Disney had made a joint open offer, where in Screwvala still holds the rights to buyback 20% from Disney, whenever he wishes to. Screwvala also said, “In a board of 12 members, Walt Disney will have a three member representation. Walt Disney will also have 36% voting rights in the company.”

Walt Disney, the second largest media house in the US, which had 32.1% stake in UTV has increased it by 22.65% in the open offer and has raised its holding to 59.94%. The approximate valuation of the entire deal is in the tunes of Rs 667 crore. Early this year, Disney raised its holding in UTV Software Communication to 32.1%, the same level as UTV’s founders, from 14.9%, by acquiring 9.35 million shares for Rs 805 crore ($203 million), at Rs 860.79 a share.

In other words, Disney had first acquired 14.85% in UTV for about Rs 65 crore in August 2006. Disney was short of the 15% mark, which is the minimum required to make an open offer. Besides this, in August, Walt Disney completed its investment of Rs 1.18 billion into UTV Global Broadcasting Limited (‘UGBL’) for a 15% stake. Simultaneously, UTV also took 75% stake in UGBL through infusion of Rs 2.4 billion. Promoters of UTV retain balance 10% in the business. In 2006, Walt Disney also bought 100% of kids’ channel Hungama TV (United Home Entertainment Ltd), owned by the UTV Software Communications. Reported the deal is valued at $30.5 million.

UTV is one of India’s largest integrated global media and entertainment group. UTV India and its subsidiaries (UTV) create, aggregate and disseminate content of various genres across varied distribution platforms.