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| India's UTV Motion Pictures plans delisting from AIM |
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UTV Software Communications is considering delisting its wholly-owned subsidiary, UTV Motion Pictures (UMP) from the Alternate Investment Market (AIM) of the London Stock Exchange, according to sources close to the development. UMP Plc, one of the UTV group's many divisions, is among the largest Bollywood studios with a line-up of Hindi film titles that are produced, marketed and distributed worldwide. UMP has production arrangements with two Hollywood majors such as Disney and Fox Searchlight. However, UTV has responded to this report, stating: "The Company is in discussions with the directors of its subsidiary (UMP Plc) in relation to a potential offer for the issued share capital of UMP Plc. The process is at an early stage and there can be no certainty that an offer will be made for UMP Plc and neither can there be any certainty as to the terms of any offer." UTV will merge its motion pictures company with the parent company UTV Software and thus consolidate its shareholding. According to a company official who did not want to be identified, the trigger for this move arises from the fact that there is hardly any liquidity on the AIM exchange. UTV Software Communications is the second Indian company to consider delisting from the AIM exchange, the first being Indiabulls. UTV controls 71 per cent of the equity in UTV Motion Pictures, while the rest is widely held. The company officials quoted earlier said the public shareholders will be compensated in the form of a share swap, resulting in shares of UTV Software Communication being allotted to them. The lead advisor to the proposed transaction is Grant Thornton, a UK-based consultant. The Ronnie Screwvala promoted UTV Software Communications' movie division, UTV Motion Pictures, got listed on the AIM in 2007. UTV transferred all its domestic and international motion picture production activities to its listed overseas subsidiary. UMP Plc is also the holding company of UTV Motion Pictures (Mauritius), and houses the movie production business of the entire UTV group. - Agencies Related Articles:
Last update: 19-05-2009 09:48
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