MUMBAI: UTV Software Communications has received Rs 692 million as the first tranche of payment from The Walt Disney Company (Southeast Asia) Pte Ltd. With this transaction, the strategic investment into UTV from The Walt Disney Company stands executed.

In July this year, Disney had entered into an agreement to acquire 100 per cent of United Home Entertainment LTD (Hungama TV) at an enterprise valuation of $30.5 million and purchase equity stake of 14.9 per cent of expanded capital in UTV Software Communications LTD, at a consideration of $ 14 million. So, UTV would get a combined $ 44.5 million from the stake sale.

In pursuance to the deal, UTV has now allotted 34, 00,000 equity shares of Rs 10 each at an issue price of Rs 192.50 per share to Disney. The approval for the same was granted by the members at their annual general meeting held on 24 August, 2006, as per an official release. Disney also announced the allotment of 19, 49,360 warrants to Ronnie Screwvala, founder and promoter of UTV.