Home BusinessUTV to consolidate motion pix biz; to buy 23.18% in UK arm
Media and entertainment firm UTV Software today said it plans to acquire the remaining 23.18 stake in its UK subsidiary UMP Plc in a move to consolidate its motion picture business and enhance shareholders value.
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The board of directors of the company today considered a proposal of consolidating the business of its subsidiaries UMP Plc and UTV Mauritius into UTV Software to reap the benefits of operational synergy and enhance shareholders value, it said in a filing to the Bombay Stock Exchange.
The board has also approved the issuance of one equity share in the company for every 3.75 shares held in UMP, it added.
The proposal values the entire issued ordinary share capital of UMP at approximately $194.74 million and each UMP share at $1.87 based on the Indian closing price of Rs 341.45 per UTV share on July 17, the filing said.
"In view of the ongoing working capital funding requirements of the movie production business (and the fact that UTV is the most likely source of funding for UMP), UTV considers that it would be preferable to have full ownership of the business and to seek investment as a single integrated movie business," it added.
UTV Software currently holds 76.82 per cent in UMP and the balance is widely held by independent shareholders.