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.

MUMBAI: The global scare of another economic crisis fuelled by huge debt of Uncle Sam has also hit Indian bourses and how.

Even as the Bombay Stock Exchange (BSE) closed at 16,857.91 points, just 0.78 per cent down today, the bear- run, which started on Friday last, is continuing.

And among the media entities, every single listed company has seen erosion in the scrip.

As per data collected from the BSE, Reliance ADAG‘s Reliance MediaWorks (RMWL) is the worst hit. In the last three days, the share price dropped by 16 per cent. On Tuesday, it closed at Rs 95.9 per share, as compared to a closing price of Rs 111.35 on Thursday, 4 August.
 
Following RMWL, there is another multiplex operator, Cinemax, which has seen a 15.47 per cent fall in the scrip price. The shares closed at Rs 30.7 apiece. The closing price for 4 August was Rs 35.45.

Other companies, which lost over 10 per cent of their share value, are BAG Films and Media, Wire & Wireless (India) Ltd (WWIL), Next Mediaworks (earlier Mid-Day Multimedia), NDTV and Fame Cinemas.

Network18 saw erosion of 9.2 per cent, while Hathway Cable & Datacom shares tumbled 8.26 per cent on Tuesday, compared to Thursday last. Zee News Ltd, Den, TV18 and PVR all lost over six per cent of the scrip over the three days.

Meanwhile Balaji Telefilms and HT Media lost just over 5 per cent scrip value when compared with Thursday closing price.

Among the least affected companies were Jagran Prakashan, which saw just 0.9 per cent dip. The shares of company closed at Rs 112.4 on Tuesday, compared to Rs 113.4 on last Thursday. Even UTV Software Communications did not see any change, as it was screened by the Walt Disney‘s offer for buyback. UTV shares closed Monday at Rs 953, down 0.91 per cent from Rs 961.7 on Thursday.

Zee Entertainment Enterprises Ltd (Zeel) also saw just 0.96 per cent drop, to Rs 125.5 per share.

Meanwhile, Dish TV lost 4.11 per cent, followed by Entertainment Networks (India) Ltd (ENIL), Hinduja Ventures, TV Toda, Inox Leisure, Reliance Broadcast Networks Ltd (RBNL) and Sun TV.

MUMBAI: The Walt Disney Company proposes to take full control and delist UTV Software Communications with a Rs 20.13 billion offer to buy out the public shareholders and the founder-promoters.

The Walt Disney Company (Southest Asia) Pte is making an offer at a ceiling price of Rs 1000 per share for the remaining 49.56 per cent that will give the global media giant complete hold of UTV‘s movie making, television broadcasting and gaming businesses. This is 11 per cent above the previous day‘s closing share price of UTV.

The only entity where Disney will still have to share with a local partner is Indiagames, the online and mobile gaming company where UTV holds around 60 per cent stake. Disney may decide to sell UTV‘s stake in Indiagames, the company founded by Vishal Gondal. 

Ronnie Screwvala and his associates will reap a harvest of Rs 8.05 billion after exiting from the media company that they founded way back in 1990. They hold 8.053 million shares, or 19.82 per cent, of the company.

With Disney holding 20.497 million shares, or 50.44 per cent, of UTV Software Communications, the aggregate promoter holding stands at 70.26 per cent.

UTV is currently listed in Bombay Stock Exchange and the National Stock Exchange of India. 

Indiantelevision.com had earlier reported in June that Disney was planning to buy out UTV.

After the completion of the buyout, Screwvala will take charge as the managing director of The Walt Disney Company in India. He will be responsible for overseeing the Indian businesses of the companies owned and managed by the Disney Group.

Disney entered the Indian market late as a broadcaster in children‘s entertainment, pulled back by a deal that it had with Lalit Modi‘s company, Modi Entertainment Network. In 2006, Disney acquired a 15 per cent stake in UTV and kids channel Hungama for a combined investment of $44.5 million. Then it subsequently upped its stake progressively to 50.44 per cent, accumulating pieces of the broadcasting business that included youth channel UTV Bindass, Hindi movie channel UTV Movies, UTV Action and World Movies.

Shares of UTV closed Tuesday at Rs 950.45 on the BSE, up 5.39 per cent from its previous close.

"Disney will pump in investments and get more aggressive in the Indian market where it lags behind the other global media companies like News Corp (Star), Sony and Viacom which runs a joint venture with TV18 Group," says a media analyst.