UTV Software Communications gets Rs 9.24 billion FDI nod

    MUMBAI: The government has approved 20 foreign direct investment (FDI) proposals worth Rs 19.62 billion, which also includes UTV Software Communications’ approval for Rs 9.24 billion (Rs 923.94 crores).

    As per the approval, The Walt Disney Company (Southeast Asia) will pump foreign equity of Rs 9.24 billion in UTV Software Communications by way of subscribing to fresh equity shares, besides picking up equity shares and warrants in UTV Global Broadcasting Ltd (UGBL). Additionally, acquisition of shares by way of open offer in UTV Software has also been approved.

    Earlier this year, the Walt Disney Company also upped its stake in the company to 32.1% from 14.85%. After the preferential allotment and on successful completion of the open offer, Disney’s stake in UTV Software Communications would rise to 52.1 per cent.

    Disney’s investment in UTV Global Broadcasting will be in the form of acquisition of 15% equity stake and 720,000 warrants for Rs 1.19 billion (118.98 crores). Disney will have a total holding of 37.5% in UTV Global Broadcasting, whereas UTV Software Communications chairman Ronnie Screwvala will hold 10 per cent of the shares of UGBL.

    UTV Software Communications’ recently announced its new English business news channel – UTVi along with ABC News. The company also has a presence in movies, animation, gaming and television content space.

    On the other hand, cable TV services company Hathway Cable & Datacom has also been granted approval for bringing in foreign equity to the tune of Rs 2.17 billion (Rs 217.25 crores).