Disney completes Rs 118 crore investment in UTV
August 11th, 2008
The Walt Disney Company has completed an investment of Rs 118 crore in UTV Global Broadcasting Ltd (UGBL) for a 15 per cent stake, announced in February 2008. UGBL has allocated 3,00,000 equity shares to The Walt Disney Company (Southeast Asia) Pte Ltd.
At the same time UTV Software Communications Ltd (UTV), has been allotted 15,00,000 equity shares of Rs 10 each of UGBL, constituting 75 per cent of the paid up share capital of the company, for a aggregate consideration of Rs 240 crore, making UGBL a subsidiary of UTV. The remaining 10 per cent continues to be held by Ronnie Screwvala’s Promoter Group.
UGBL is the parent company for its two wholly owned subsidiaries that have launched four channels in six months between September 2007 - March 2008. First is the youth GEC that houses the youth brand Bindass, launched in September 2008. Bindass Movies is another innovative offering sharply targeted at Indian youth.
Second is UTV Entertainment Television, that houses World Movies, the only 24 hour channel dedicated to movies from around the globe. Launched in February 2008, UTV Movies, is the 24-hour premium Hindi movie channel, that has the lineage of UTV Motion Pictures, one of the largest Hindi movie studios in India
With the completion of this investment, Disney has completed 32.1 per cent acquisition in parent UTV Software Communications and 15 per cent in the broadcast arm UGBL at a total out lay of Rs 818.3 crore.
UTV Software Communications has also exercised its right to convert its debt funding in UGBL into equity shares of UGBL.