Media and entertainment firm UTV Software on Monday said Walt Disney will be hiking its stake in the company to 32 per cent pursuant to a preferential allotment of shares worth Rs 805 crore.
The board of directors at its meeting on February 16, had executed a share subscription agreement between the Walt Disney Company (Southeast Asia) Pte Ltd, UTV Software, Unilazer (Hong Kong) Ltd, Rohinton Screwvala and Unilazer Exports and Management Consultant, the company said in a filing to the BSE.
As per which, the board has approved the issuance of 93,52,500 equity shares on preferential basis to Disney at Rs 860.79 per share aggregating to Rs 805 crore.
Upon allotment of the said shares and warrants the aggregate holding of Disney along with the persons acting with concert would be 64.20 per cent of the fully diluted post issue capital.
The board noted that by virtue of the aforesaid, Disney, Unilazer and certain other promoters of the company, would be required to make an open offer to the public shareholders of the company under the Securities and Exchange Board of India.
Walt Disney Company along with Unilazer Exports and Management Consultant, Unilazer (Hong Kong) Ltd and Rohinton Screwvala has made an open offer to the shareholders of UTV Software for acquiring 77,45,494 equity shares amounting to around 20 per cent stake in the domestic media firm, as per an advertisement in Business Standard.
Upon completion of this offer, assuming full acceptance and receipt of required regulatory approvals, Walt Disney would hold 51.60 per cent of the post issue capital of UTV Software.