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NEW
DELHI: The Government has approved the proposal by the Walt
Disney Company (Southeast Asia) Pte Ltd, Singapore, for increasing
its shareholding on fully diluted basis to 100 per cent of
UTV Software Communications.
The Cabinet Committee on Economic Affairs approved the proposal
following the recommendation of the Foreign Investment Promotion
Board (FIPB) in its meeting on 15 November.
Disney,
which holds 50.44 per cent in UTV, will infuse around Rs 20.13
billion for acquiring the remaining stake in the Indian media
conglomerate.
UTV
Software had announced on 26 July that Walt Disney had offered
to buy out stakes held by public shareholders and other promoters
of the company.
It
had been announced that subsequent to the buyout of the public
shareholders, the company will be delisted from both the Bombay
Stock Exchange and the National Stock Exchange. "The
delisting proposal entails an offer to acquire all outstanding
equity shares held by public shareholders in the company,"
UTV said in a filing to the Bombay Stock Exchange.
Upon
the completion of the transactions, Rohinton Screwvala shall
cease to be an employee of the company and instead be employed
by The Walt Disney Company India as its managing director.
UTV
operates in five verticals - broadcasting, games, motion pictures,
digital content and television content.
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