Walt Disney Company Southeast Asia will pay $203 million to raise its stake in India's UTV Software Communications (UTV) to 32.1 per cent from 13.7 per cent, the companies said today.
At the same time, Walt Disney will pay $30 million to acquire a 15 per cent stake in UTV subsidiary UTV Global Broadcasting.
The transactions will be done through a preferential allotment to the Disney unit and its promoters, a group led by Ronnie Screwvala, founder and CEO of UTV.
Mr Screwvala will consolidate the promoters' stake with the issue of 4.5 million warrants at 860.79 rupees each - the same price paid by Disney - for an investment of 3.9 billion rupees.
Disney might boost its stake in UTV to 51.6 per cent through a public offer, assuming full acceptance and receipt of regulatory approvals, according to an advertisement in a local daily.
The offer opens on April 11th and will close on April 30th, the advertisement said.
Disney is offering 860.79 rupees a share for 7.8 million shares, the same price at which it raised its stake to 32.1 per cent.
