UFO Moviez increases stake in Scrabble Entertainment

Stake increased by 24% to 76%

UFO Moviez India (UFO), the leading player in digital cinema space, has increased its stake in Manmohan Shetty promoted digital cinema systems provider Scrabble Entertainment by 24%, taking its total holding to 76%.

Promoted by Apollo Tyres, and two leading PE funds — 3i UK, Providence Equity Partners—UFO Moviez had close to 52% stake in Scrabble Entertainment.

“We recently increased our holding to 76% in Scrabble,” said company CEO Rajesh Mishra, without disclosing the amount that was paid to acquire the additional 24% stake.

The acquisition of the additional shares were done through simple buyout of minority shareholders, said Mishra. When asked if the firm plans to increase their holding  further, he said,” There is no such plan.”

The company COO Pankaj Jaysinh, explained  they don't want original promoters of Scrabble to leave midway as their continuance will add value. "Both on Technical front and as a team expertise we want them to be with us," added Jaysinh

Commenting further on UFO's expansion plans Mishra said that they are looking to invest above Rs 150 crore in the coming fiscal. “We plan to add around 1,000 screens next fiscal. We already have 4,000 screens now. The new screens would see a healthy mix of both 2K Scrabble screens and UFO screens,” said Jaysinh. 

Generally, most of the Hollywood films are released on 2K screens due to better resolution which results into better image quality.

According to Mishra, the firm is bullish on the foreign market as well.“ We are putting thrust on Middle east as demand of India content is huge. Specially there is demand of regional content.”

 The firm has around 650 screens in middle east. Among the neighbouring countries it has a presence in Nepal and is eying to enter Sri Lanka in FY14.