UTV acquires 75% stake in UGBL

Corporate Bureau
Posted: 2008-08-09 00:57:11+05:30 IST
Updated: Aug 09, 2008 at 0057 hrs IST

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Media and entertainment conglomerate UTV informed the Bombay Stock Exchange (BSE) on Friday that UTV Software Communications has acquired 75% stake in its broadcasting arm - UTV Global Broadcasting Ltd (UGBL) for Rs 240 crore.

The acquisition was a result of UTV Software deciding to exercise its right to convert its debt funding in UGBL into equity shares of UGBL.

UGBL is the parent company for its two wholly owned subsidiaries, Genx Entertainment Ltd (Genx) and UTV Entertainment Television Ltd (UETL). Genx has already launched successfully two youth channels through the Bindass brand whilst UETL has launched the World Movies channel and UTV Movies channel.

UGBL has allotted 15 lakh equity shares constituting 75% of the paid up share capital to UTV Software for Rs 240 crore and accordingly, UGBL has become its subsidiary. In addition to the said allotment of shares, UGBL has issued 3 lakh equity shares to The Walt Disney Company (Southeast Asia) Pvt Ltd for Rs 118.26 crore. The shareholding of Disney in UGBL would be 15% of the paid-up share capital of UGBL. Shares of UTV Software were up 1.17% on the BSE on Friday to close at Rs 769.95.

Besides, the board had also approved allotment of securities to Disney for 15% in UGBL for Rs 118.98 crore while Rohinton Screwvala would be holding the remaining 10% stake in UGBL. With the completion of this investment, Disney has completed 32.1% acquisition in parent UTV Software Communications Ltd and 15% in the broadcast arm UGBL at a total outlay of Rs 8,183 crore.

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UTV acquires 75% stake in UGBL

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