* UTV Software's delisting at maximum price of 1,000 rupees
* Price represents 11 pct premium to stock's close on Monday
* UTV CEO to be managing director of The Walt Disney Co
* UTV Software's shares soar 18 pct to highest in 3.5 years
(Adds quotes, background)
MUMBAI, July 26 Walt Disney Co , the
largest shareholder in India's UTV Software Communications Ltd
, has proposed to buy most of the shares it does not
already own in the company, which has a market value of $826
million, and delist them from all bourses.
The delisting will be at a price not exceeding 1,000 Indian
rupees ($22.5) a share, UTV Software said, representing a
maximum premium of 11 percent to the stock's close on Monday.
Shares of Indian media company soared as much as 18 percent
to 1,065 rupees, their highest in about three and a half years.
Entertainment conglomerate Walt Disney holds about 50.4
percent of the current paid-up equity share capital of the
The other major shareholders, who include the company's
Chief Executive Ronnie Screwvala, hold about 19.8 percent, which
Walt Disney plans to buy after delisting at the same offer
"Walt Disney has always been interested in most of UTV's
business, especially the gaming part," said a local analyst, who
did not wish to be named, as he is not allowed to speak to the
media. The deal will help the firm diversify and expand its
presence in India, the analyst said.
UTV Software, which began as a television content company in
1990, now operates five segments -- broadcasting, games, motion
pictures, digital content and television content. The company
has been aggressively growing its gaming segment over the past
The company, which listed on the Mumbai bourses in 2005, had
reported consolidated revenue of 9.47 billion rupees and a
profit of 1.38 billion rupees in the fiscal year 2011 that ended
Screwvala will become the managing director of The Walt
Disney Co India after UTV's delisting. He was not immediately
available for comment.
The Walt Disney Co India was launched in July 2004 with its
head office in Mumbai. The company employs about 160 permanent
employees and on its website it describes India as one the
largest markets Disney has invested in for local production.
At 2:31 p.m. (0901 GMT), UTV shares were up 4 percent in a
weak Mumbai market. The stock has gained 61.3 percent so far
($1 = 44.400 Indian Rupees)
(Reporting by Manasi Phadke and Nandita Bose; Editing by