UFO Moviez stock rises up to 9% on nod to merger with Qube Cinema

Digital cinema distribution network and in-cinema advertising platform UFO Moviez and Qube Cinema have decided to merge their businesses. Reacting to the development, the UFO Moviez stock rose 7.83 percent or 34 points in afternoon trade on the BSE.

The stock is up 14.14 percent since the beginning of this year. On an yearly basis, the stock fell 2.11 percent.

"The boards of directors of UFO Moviez India and Qube Cinema Technologies approved a composite scheme of arrangement and amalgamation, amongst UFO, Qube, Qube Digital Cinema, Moviebuff and PJSA Technosoft," as per company release.

"The proposed transaction is being carried pursuant to the Scheme on the basis of which Qube's business of providing technology solutions and services in the film, video and audio domains, including digital cinema advertising will be first demerged into Qube Digital and then subsequently merged with UFO," it added.

Qube, Qube Digital and Moviebuff are part of the Qube group whereas PJSA is a wholly owned subsidiary of UFO.