Walt Disney Acquisits Utv
Walt Disney to Acquire Controlling Stake in UTV A
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UTV’s Ronnie Screwvala to stay on as MD of the firm, which will now be renamed ‘The Walt Disney Co. India’
Mumbai: Walt Disney Co. acquired a controlling interest in UTV Software Communications Ltd, one of India’s leading media and entertainment companies, through a buyout that will enable the US company to further establish itself in the South Asian country’s television and movie business.
The acquisition is being made through a subsidiary and UTV will be delisted and renamed as part of the plan that was announced by Disney in July. The company announced the acquisition of the controlling interest in a release to the New York Stock Exchange on Tuesday evening local time.
UTV co-founder and CEO Ronnie Screwvala, who’s been running the company for more than two decades, will be staying on as managing director of the company, which will be renamed The Walt Disney Co. India. He will report to Andy Bird, chairman, Walt Disney International. This marks the culmination of a process that began with Disney taking a 14.9% stake in UTV in September 2006.
“I cannot see a flaw in the plan,” said Daljeet Singh Kohli, head of research at India Nivesh Securities. “The investors get to exit the company which has been accumulating losses over a period of time. They get a huge premium for their shares. The Indian promoters make a chunk of money on the deal and Ronnie Screwvala retains control as managing director. Disney gets a huge footprint in one of the fastest-growing economies.”
For the quarter ended September, UTV Software reported a loss of ` 7.6 crore on revenue of ` 99.2 crore. It is yet to release December quarter results. The buyout process is still underway and some investors are holding on to their stakes in the hope that the offer price of ` 1,000 a share will be raised, said Amit Sharma, analyst at Wallfort Financial Services Ltd. UTV rose 0.52% to `. 1,061.50 on Wednesday on BSE. The
CASE
STUDY
UTV’s Ronnie Screwvala to stay on as MD of the firm, which will now be renamed ‘The Walt Disney Co. India’
Mumbai: Walt Disney Co. acquired a controlling interest in UTV Software Communications Ltd, one of India’s leading media and entertainment companies, through a buyout that will enable the US company to further establish itself in the South Asian country’s television and movie business.
The acquisition is being made through a subsidiary and UTV will be delisted and renamed as part of the plan that was announced by Disney in July. The company announced the acquisition of the controlling interest in a release to the New York Stock Exchange on Tuesday evening local time.
UTV co-founder and CEO Ronnie Screwvala, who’s been running the company for more than two decades, will be staying on as managing director of the company, which will be renamed The Walt Disney Co. India. He will report to Andy Bird, chairman, Walt Disney International. This marks the culmination of a process that began with Disney taking a 14.9% stake in UTV in September 2006.
“I cannot see a flaw in the plan,” said Daljeet Singh Kohli, head of research at India Nivesh Securities. “The investors get to exit the company which has been accumulating losses over a period of time. They get a huge premium for their shares. The Indian promoters make a chunk of money on the deal and Ronnie Screwvala retains control as managing director. Disney gets a huge footprint in one of the fastest-growing economies.”
For the quarter ended September, UTV Software reported a loss of ` 7.6 crore on revenue of ` 99.2 crore. It is yet to release December quarter results. The buyout process is still underway and some investors are holding on to their stakes in the hope that the offer price of ` 1,000 a share will be raised, said Amit Sharma, analyst at Wallfort Financial Services Ltd. UTV rose 0.52% to `. 1,061.50 on Wednesday on BSE. The