CCI clears UTV Software-Walt Disney merger

CCI clears UTV Software-Walt Disney merger
The Competition Commission of India (CCI) has given its nod to the merger of UTV, media and entertainment firm, with Walt Disney (South East Asia) at around Rs. 2,000 crore.

Last month, UTV Software had declared that Disney is looking to buy stake of promoter and public shareholding in the company. However, the merger required CCI's clearance, for which UTV Software had approached the Commission on August 1, 2011.

CCI said, "Based on the facts on record and the notice of the proposed combination filed by the acquirer [Walt Disney] under sub-section [2] of section 6 of the Competition Act, and the examination of the businesses involved.... The Commission, hereby, approves the proposed combination."

UTV will be delisted from both the Indian stock exchanges, Bombay Stock Exchange and National Stock Exchange, after Walt Disney Company buys the public shareholding of the company.

Presently, Walt Disney Company possesses 20,497,994 equity shares of UTV, accounting for a 50.44% stake.

Following the delisting, Walt Disney will acquire 80,53,480 equity shares of UTV Software Communications from the other promoters of the company, which will account for 19.82% of the current paid-up equity share capital.

UTV Software has approved the delisting of shares and will acquire the shares from public at maximum Rs. 1,000 per equity share.

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