Walt Disney Plans To Acquire UTV Software

Walt Disney Plans To Acquire UTV SoftwareThe world’s biggest theme-park operator, Walt Disney Co. is planning to acquire Mumbai-based UTV Software Communications Ltd. and delist the company. The new move is part of its strategy to expand its business in the South Asian nation's fast-growing media industry.

On Tuesday, UTV Software revealed that its board has approved a proposal from Walt Disney, to buy out other shareholders for a maximum price of 1,000 rupees a share. Walt Disney already holds 50.4% of the UTV’s 40.6 million outstanding shares as of June 30. The company is planning to delist the shares of Indian Media Company from all stock exchanges in India.

Shares of UTV Software Communications are currently listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

After UTV Software Communications received the proposal from Walt Disney its shares rose 5.32% at Rs. 949.80 at 10:46 IST on BSE. On BSE, 6.07 lakh shares of UTV Software Communications were traded in the counter as against an average daily volume of 93,035 shares in the last one quarter.

In the March quarter, the net profit of UTV Software Communications fell 53.8% to Rs. 14.12 crore on 87.1% increase in net sales to Rs. 237.31 crore as compared to the same quarter last year.