UTV Software acquires 75 pc stake in UGBL

MUMBAI: Media and entertainment company UTV Software Communications today said it has acquired 75 per cent stake in its broadcasting arm UTV Global Broadcasting Ltd for Rs 240 crore.

The acquisition was a result of UTV Software deciding to exercise its right to convert its debt funding in UTV Global Broadcasting Ltd ("UGBL") into equity shares of UGBL.

In a filing to the Bombay Stock Exchange, UTV Software said UGBL has allotted 15 lakh equity shares constituting 75 per cent of the paid up share capital to UTV Software for Rs 240 crore and accordingly UGBL has become its subsidiary.

In addition to the said allotment of shares, UGBL has issued 3 lakh equity shares to The Walt Disney Company (Southeast Asia) Pvt Ltd for Rs 118.26 crore.

The shareholding of Disney in UGBL would be 15 per cent of the paid-up share capital of UGBL.

Earlier in February 16, the board of directors of the company had approved the proposal entailing the conversion of debt funding and investment for a 75 per cent stake for Rs 240 crore.

Besides, the board had also approved allotment of securities to Disney for 15 per cent in UGBL for Rs 118.98 crore while Rohinton Screwvala would be holding the remaining 10 per cent stake in UGBL.

UGBL is the parent company for its two wholly owned subsidiaries, Genx Entertainment Ltd and UTV Entertainment Television Ltd. Genx has launched two youth channels through the Bindass brand whilst UETL has launched the 'World Movies channel' and 'UTV Movies channel'.