Walt Disney to Hike stake in UTVi

UTV Software Communications, in which Walt Disney Company holds a majority stake, is planning to increase its shareholding from 20 to 49% in a Special Purpose Vehicle (SPV) that owns and controls the business news channel UTVi. Walt Disney currently holds 59.9% in publicly-listed UTV Software Communications, in which Ronnie Screwvala holds 23% and the rest lies with the public. UTV Software Communications, in turn, holds 20% in an SPV that owns UTVi. Screwvala and associates hold the rest. Because of Walt Disney’s majority holding in UTV Software Communications, the company is considered a foreign company under the pre-2009 FDI guidelines, so the SPV will be considered a foreign-owned company. The proposal, which was made at a UTV board meeting on Friday, would effectively mean that, on a pro-rata basis, Walt Disney’s stake in the SPV would go up to 29%