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Media
firm UTV has clarified reports about a foreign investor
picking up a stake in it |
These reports appeared in some
dailies on 29 March 2002 and were
in respect of a fresh round of equity that UTV is receiving
from Mauritius-based CDP Capital. These stated that the
latter's application to invest 15 per cent at a cost of
Rs 585 million in UTV Software Communications was given
government clearance.
In a press release issued today UTV says the
facts are as follows:
a) UTV, one of India's largest media and content companies,
is involved in TV production, Animation, Motion Picture
production and distribution and Allied content activities
like corporate ad film production and post-production studios.
UTV has agreed to a private placement of fresh shares to
CDPQ of Canada.
b) CDPQ headquartered in Montreal Canada, is one of the
largest equity investors in the world, and the largest in
Canada, where it controls the pension funds of all citizens
of Quebec. CDPQ has holdings in media all over the world,
and owns close to 12% of MGM Hollywood.
c) CDPQ has made a fresh equity investment in UTV of Rs
46 crore (Rs 460 million) and picked up a 15.8 per cent
stake. It has also bought shares from other investors including
Warburg Pincus, thereby having an equity holding of approx
30 per cent in UTV
d) Post this transaction,
the promoter group lead by Ronnie Screwvala will continue
to hold 40 per cent, CDPQ will hold 30 per cent , News Corp/Star
will hold 15 per cent and the balance 15% is held by various
Financial investors including Mitsui of Japan and IL&FS.
e) At a time when the overall equity market is sluggish,
this is the one of the few placements, especially in the
media industry.
f) For UTV this placement comes as a precursor to the possibility
of an IPO next year.
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