With the scrip of UTV Software Communications closing above Walt Disney’s open offer price band on the exchanges on Wednesday, shareholders are expecting the promoters to offer a higher price for delisting.

This comes after US-based Walt Disney’s recent announcement of an open offer between January 16 and January 20, to delist 1.22 crore shares, which represent 29.96 per cent of UTV Software Communications’ equity.

On Wednesday, UTV Software Communications shares closed at Rs 1,019.65 (down 1.54 per cent) on the BSE.

During intra-day trade the stock touched a high of Rs 1,040.

The stock is trading above the proposed open offer price that has been fixed between Rs 835.03 and Rs 1,000 a share.

HIGHER VALUATION

The stock commands a higher valuation than other media stocks, said analysts.

They are of the opinion that the offer price is fair and retail investors should participate in the delisting.

“At this point of time, my advice to investors is that they should sell their shares at the offered price and re-enter the stock markets to book profits,” said Mr Harish Vasudevan, Strategist, SVS Securities.

But the analysts say they would not be surprised at a revision in the open offer price.

Following the announcement of Alfa Laval India hiking their delisting offer price, shareholders are hoping for another case of revision of delisting offer price for UTV Software Communications too.

Analysts expect the revised price (if any) to be close to Rs 1,100 a share.

Source:http://www.thehindubusinessline.com/markets/article2793266.ece

Meanwhile, the BSE Sensex was down 140.51 points, or 0.89%, to 15,733.44.

On BSE, 19,159 shares were traded in the counter as against an average daily volume of 18,034 shares in the past one quarter.

The stock hit a high of Rs. 1,000 and a low of Rs. 987 so far during the day. The stock had hit a 52-week high of Rs. 1,050 on 26 July 2011 and a 52-week low of Rs. 386 on 10 February 2011.

The stock had outperformed the market over the past one month until 27 December 2011, gaining 4.96% compared with the Sensex’s 1.14% rise. The scrip had also outperformed the market in past one quarter, rising 2.38% as against 3.93% fall in the Sensex.

The mid-cap media firm has an equity capital of Rs. 40.76 crore. Face value per share is Rs. 10.

The open offer will close on 20 January 2012. US-based Walt Disney, which controls 50.28% of UTV Software Communications, said it would pay a minimum Rs. 835.03 a share and a maximum Rs. 1,000 per share for delisting the company.

At the top end, the offer represents a premium of 1.75% to UTV’s closing price of Rs. 982.80 on BSE on Tuesday (27 December 2011).

For delisting to be successful, Disney has to acquire a minimum of 81.39 lakh shares, representing 19.96% of UTV’s paid-up capital.

Foreign promoter Walt Disney Company plans to acquire 100% stake in UTV Software Communications and delist the latter’s shares from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The delisting proposal was approved by UTV’s board at a meeting held on 25 July 2011.

On a consolidated basis, UTV Software Communications reported net loss of Rs. 28.86 crore in Q2 September 2011 compared with net profit of Rs. 40.18 crore in Q2 September 2010. Net sales fell 2.9% to Rs. 230.92 crore in Q2 September 2011 over Q2 September 2010.

UTV Software Communications is a diversified media and entertainment company with content creation abilities across platforms and genres.

Source:http://www.indiainfoline.com/Markets/News/UTV-Software-bucks-trend-on-Walt-Disneys-open-offer/4089768760

UTV Software Communications clocked volume of 91,000 shares by 12:28 IST on BSE, a 5.85-times surge over two-week average daily volume of 16,000 shares. The stock lost 0.27% to Rs. 945.50.

Sun TV Network notched up volume of 2.04 lakh shares, a 3-fold surge over two-week average daily volume of 68,000 shares. The stock rose 1.54% to Rs. 250.35.

Reliance Communications clocked volume of 31.09 lakh shares, a 1.8-fold surge over two-week average daily volume of 17.28 lakh shares. The stock rose 0.64% to Rs. 70.40.

Unitech clocked volume of 75.23 lakh shares, a 1.69-fold surge over two-week average daily volume of 44.43 lakh shares. The stock rose 4.48% to Rs. 23.30.

Pipavav Defence and Offshore Engineering Company notched up volume of 44.78 lakh shares, a 1.18-fold surge over two-week average daily volume of 38.04 lakh shares. The stock lost 3.7% to Rs. 56.

Source:http://www.indiainfoline.com/Markets/News/Volumes-jump-at-UTV-Software-Communications-counter/4046863051

Total Income has decreased from Rs. 1400.936mn for the quarter ended September 30, 2010 to Rs. 994.249mn for the quarter ended September 30, 2011.
UTV Software Communications Ltd has posted a net loss of Rs. 75.955 mn for the quarter ended September 30, 2011 as compared to net profit of Rs. 474.769mn for the quarter ended September 30, 2010. Total Income has decreased from Rs. 1400.936mn for the quarter ended September 30, 2010 to Rs. 994.249mn for the quarter ended September 30, 2011.

The Unaudited consolidated results for the Quarter ended September 30, 2011
The Group has posted a net loss after Minority Interest of Rs. 288.550mn for the quarter ended September 30, 2011 as compared to net profit of Rs. 401.815mn for the quarter ended September 30, 2010. Total Income has decreased from Rs. 2414.882mn for the quarter ended September 30, 2010 to Rs. 2402.535mn for the quarter ended September 30, 2011.

Source:http://www.indiainfoline.com/Markets/News/UTV-Software-Communications-Q2-net-loss-at-Rs-75.955mn/5285638050

UTV Software Communications Ltd, which holds 56 per cent of the share capital of Indiagames, has entered into definitive agreements with the company’s founder promoters and employee shareholders to acquire 30.02 per cent of the equity shares for a consideration of Rs 94.56 crore, increasing its stake in Indiagames from 56 per cent to 86.02 per cent when completed.

The company is negotiating with the remaining shareholders of Indiagames to purchase the balance holding to increase its shareholding to 100 per cent.

Source:http://www.thehindubusinessline.com/markets/stock-markets/article2525229.ece