UFO Moviez rises 9% on approval of scheme of amalgamation with Qube Cinema

Moneycontrol News

Shares of UFO Moviez India added more than 9 percent intraday Thursday on approval of composite scheme of arrangement and amalgamation.

"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.

The merger ratio based on relative valuation stands at 63.6 percent for UFO and 36.4 percent for Qube Digital.

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

The meeting of board of directors is scheduled to be held on November 6 to consider fund raising by way of preferential issue.

Sanjay Gaikwad, Founder and Managing Director of UFO Moviez India said, "We are excited to combine our business with such a strong partner. The combined Company would have a stronger position in India’s digital cinema distribution and in-cinema advertising industry."

At 10:28 hrs UFO Moviez India was quoting at Rs 472, up Rs 37.80, or 8.71 percent on the BSE.