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Investors seek 10% premium in UTV delisting

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Mehul Shah Mumbai
Last Updated : Jan 20 2013 | 2:56 AM IST

Walt Disney may succeed in its bid to delist shares of UTV Software from Indian bourses, but may have to pay 10 per cent more than what it was willing to offer to public shareholders.

UTV's public shareholders tendered 10.28 million shares till the close of the delisting offer on Friday.

About 5.32 million shares were tendered at Rs 1,100, the highest among all price points. The floor price was Rs 835.03 a share. In the offer letter, Walt Disney had indicated it was willing to pay up to Rs 1,000 a share to acquire what was tendered by public shareholders.

However, for the delisting to succeed, Walt Disney will have to pay Rs 1,100 a share to acquire 9.56 million shares (23.45 per cent of all UTV shares) tendered at or below that price. The UTV promoters — Walt Disney, Rohinton Screwvala, Zarina Mehta and Unilazer - own 70.04 stake in the company. If they accept 9.56 million shares from public shareholders, their holding would increase to 93.49 per cent, much above the minimum threshold of 90 per cent required to delist.

Meanwhile, the delisting offer of Wockhardt's promoters, the Khorakiwala family, to public shareholders of group firm Carol Info Services, which also closed on Friday, also got good response. The offer had opened on January 16.

About 9.56 million shares were tendered in the BSE-listed company’s delisting offer, with highest at Rs 160 per share. The floor price for the offer was Rs 106 a share and promoters had shown their willingness to acquire shares at a maximum price of Rs 160 a share.  However, they will have to shell out Rs 165 a share to take their holding above 90 per cent to delist the shares. About 9.32 million shares were tendered at Rs 165 or below in the delisting offer, constituting about 26.29 per cent holding in Carol. Khorakiwala family owns 63.99 per cent stake in Carol and if they accept shares tendered at or below Rs 165 a share, their holding in the company will go up above 90 per cent.     

Carol shares closed down 1.11 per cent at Rs 156.15 on Friday on the BSE.

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First Published: Jan 21 2012 | 12:46 AM IST

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