Almost a year after its announcement, the merger has hit a major roadblock.
In a move to create a monopoly in digital cinema distribution network and in cinema advertising platform, in November 2017 Chennai-based Qube Cinema Technologies and Mumbai-head quartered UFO Moviez announced the merger of their businesses. Even after part of the scheme was approved by the Chennai NCLT bench, the scheme was rejected by the Mumbai NCLT in the last week of January 2019.
We had covered this article in our January 2018 issue and details of the proposed merger are as below.
UFO Moviez India Limited (UFO) is India's largest digital cinema distribution network and in-cinema advertising platform in terms of a number of screens. UFO operates India's largest satellite-based, digital cinema distribution network using its UFO-M4 platform, as well as India's largest D-Cinema network. Their offerings include Digital Cinema System, UFO Framez, Club Cinema, and IMPACT Ticketing Platform. UFO Moviez is listed on BSE.
Qube Cinema Technologies Private Limited (QCTPL) is engaged in the business of providing technology in film, video, and audio, including digital cinema distribution, editing, production and sound.
Proposed Rationale
To give exit to the existing Private Equity Investors in QTCPL, it was decided that UFO and India Advantage Fund S4 I, a fund managed by ICICI Venture Funds Management Company Ltd ("INVESTOR") shall purchase an aggregate of 53.20% of the share capital of QTCPL from these PE Investors.
The promoters of UFO were supposed to continue to be promoters of the combined entity and the promoters of Qube were not going to play the role of promoters of the combined entity.
In case of UFO, post-merger in public shareholding category the promoters of Qube would have had 11.93% stake postmerger and ICICI Venture(non-promoter) would have had a 13.44% stake postmerger.
Prominent/Relevant 0bjections
هذه القصة مأخوذة من طبعة March 2019 من M & A Critique.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة March 2019 من M & A Critique.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Advent International to combine its listed & private entity business
Recently, Advent International announced the merger of its privately held pharma company into recently acquired listed pharma company.
Eris Lifesciences on Acquisition Spree to expand its branded formulations portfolio
Recently, Eris Lifesciences Limited announced acquisition of 'branded Formulation Business' of Biocon Biologics Limited pertaining to the India territory through slump sale. In addition, ELL also announced a foreign acquisition.
Vuenow Merges All Entities Will It Create Value?
Recently, Vuenow Infratech Limited, a BSE listed company, announced the merger of two private companies itself.
Dalmia Group continues its journey of segregation of businesses by way of demerger
Recently Dalmia Group announced yet another restructuring of one of its group companies Dalmia Bharat Refractories Limited.
Rane Group to consolidate its listed operational entities
After keeping different operational listed entities for years, Rane Group, one of the key players in Auto Ancillary space has decided to consolidate its listed operational companies under Rane (Madras) Limited.
Zuari Group's attempts to create the biggest private producer of Fertilisers
“Transfer of Identified shares from ZACL to ZMPPL is a precondition for approval of the merger transaction”
Shankara Building Products separates its trading & marketplace business for independent growth
Recently, Shankara Building Products Limited announced the demerger of its trading/building material marketplace business from its manufacturing business.
CASE LAW: Reduction of Share Capital by way of cancellation of Shares amounts to "Transfer" and Losses available for set-off
Recently, the Mumbai bench of the Income Tax Appellate Tribunal in the case of Tata Sons Limited held that the reduction of share capital of the company by way of cancellation of shares is an extinguishment of rights in shares and be treated as \"transfer\".
Allcargo Logistics creating a more simplified structure
“The transaction will separate the international supply chain business into a separate entity”
TVS Group's Restructuring A Benchmark for Family Arrangements
\"Part I of the scheme, although complex with multiple transactions, executed to achieve separation of ownership between various family branches\"