Media and entertainment firm UTV Software Communications has fixed the exit price for shareholders at Rs 1,100 per share as part of its complete acquisition by US-based Walt Disney Company.
In a filing to the BSE today, the company said Walt Disney will start the process to delist UTV shares from the stock exchanges after February 6.
“The acquirer (The Walt Disney Company Southeast Asia Pte Limited) has accepted the discovered price of Rs 1,100 per share and shall acquire all shares tendered through valid bids at or below the exit price,” the filing said.
In July last year, UTV Software Communications had announced that Walt Disney Co has offered to buyout the stakes held by public shareholders and other promoters of the company in a deal valued around Rs 2,000 crore.
Subsequently, in December 2011, the Cabinet Committee on Economic Affairs (CCEA) approved the deal.
UTV further said that Walt Disney’s stake would exceed 90 per cent of UTV’s share capital if it accepts these shares, the filing said.
The company had made the offer to public shareholders who held 29.96 per cent stake in the firm to submit their bids to fix the exit price.
As of December 31, 2011, the promoters and promoter group shareholding in UTV stood at 70.04 per cent, including 50.28 per cent owned by Walt Disney Company (South East Asia) Pte Ltd.
As part of the deal, UTV Chief Executive Officer, Mr Ronnie Screwvala, has been appointed Managing Director of The Walt Disney Company India. Morgan Stanley is the manager to the offer.
UTV operates in five verticals — broadcasting, games, motion pictures, digital content and television content.
Shares of UTV were trading at Rs 1,064.95, up 0.38 per cent from the previous closing price on the BSE in the afternoon session.