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| UTV Software to delist UK arm from AIM market |
| Press Trust of India / Mumbai Sep 16, 2009, 15:41 IST |
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Media and entertainment firm UTV Software today said it will delist its UK subsidiary UMP Plc from the AIM market of the London Stock Exchange in January next year following its acquisition of the remaining 23.18 per cent stake in the company.
In July last year the board of UTV Software had approved the scheme to acquire the remaining 23.18 stake in its UMP Plc in a move to consolidate its motion picture business and enhance shareholder value.
"If the scheme becomes effective, UMP will be dissolved (without winding up). Application will be made to the London Stock Exchange for the cancellation of the UMP shares from admission to trading on AIM (Alternative Investment Market)," UTV Software said in a filing to the Bombay Stock Exchange.
The cancellation is expected to occur on January 8, 2010, it said.
Under the arrangement, the board has also approved the issuance of one equity share in the company for every 3.75 shares held in UMP. Also all the assets and businesses of UMP would be transferred to UTV.
"The proposal values the existing issued ordinary share capital of the UMP at $271.92 million and each UMP Share at $2.61 based on the Indian closing price of Rs 475 per UTV share on September 11," the filing added.
UTV Software currently holds 76.82 per cent in UMP and the balance is held by independent shareholders.
UMP would convene a court meeting of shareholders pursuant to the approval received from the High Court of the Isle of Man for the purpose of approving the said scheme, the filing said.
UMP Plc, formerly UTV Motion Pictures Plc, is a holding company for UTV (Mauritius). Under the proposed plan, there would also be a merger of UTV (Mauritius), which is UMP's subsidiary, into UTV pursuant to the Indian scheme and a scheme of arrangement under Mauritius law between UTV (Mauritius).
"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," the company had earlier said.
The issued share capital of UTV (Mauritius) comprises 80,200,000 ordinary shares of $0.05 each, 99.75 per cent of which are held by UMP and the remainder by UTV.
Shares of UTV Software were trading at Rs 453, down 0.15 per cent in late afternoon trade on the BSE.
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