UTV awaits Sebi nod for Disney open offer

Walt Disney’s open offer for 20 per cent additional stake in UTV Software Communications is still awaiting an approval from the Securities and Exchange Board of India, UTV said today.

According to a notice sent by the company to the Bombay Stock Exchange, the offer should have opened on April 11 and closed on April 30, 2008.

The open offer was in order to comply with Sebi regulations, post Walt Disney raising its stake in UTV to 32.1 per cent in February from 13.7 per cent.

“The information we have is the letter of offer is pending Sebi approval. As soon as Sebi gives its approval, the merchant bankers to the acquirer will make suitable announcements and proceed with open offer,” a company spokesperson said.

Disney had offered to buy each share at Rs 860.79, the price at which the deal with UTV promoter and chief executive officer, Ronnie Screwvala, was struck.

Since then, UTV share has shed 8 per cent. The decline in the share price is, however, lower than the 18 per cent fall in the Sensex.

According to information available on the BSE, Disney held 37.29 per cent stake in UTV as on June 30, 5.2 percentage points more than what the deal with UTV had envisaged.

Along with the above deal, Disney had also decided to invest Rs 119 crore for a 15 per cent stake in UTV Global Broadcasting.

UTV Global is the parent company of two wholly-owned subsidiaries, Genx Entertainment and UTV Entertainment Television. Genx runs youth entertainment channels under the Bindass brand, whereas UTV Television runs movie channels.