http://in.reuters.com/article/businessNews/idINIndia-41177720090720?feedType=RSS&feedName=businessNews
UTV Software to buy UMP for about $195 mln Mon Jul 20, 2009 6:07pm IST Reuters - Media company UTV Software Communications Ltd said it agreed to buy the remaining stake in UMP Plc for about $195 million as it tries to integrate its movie business. The proposal, which values each UMP share at $1.87, offers a premium that is nearly twice the company's Friday closing middle market price. UMP shareholders will get 1 UTV share for every 3.75 UMP shares, UTV said in a statement. UTV, whose forthcoming releases include "Delhi Belly" and "Shoebite", has a market capitalisation of about $239.80 million and has stake of about 77 percent in UMP. "In view of the ongoing working capital funding requirements of the movie production business, UTV considers that it would be preferable to have full ownership of the business and to seek investment as a single integrated movie business," UTV said. Shares of UMP rose 28 percent to 1.25 pence by 1229 GMT on the London Stock Exchange, while those of UTV closed up 7 percent at Rs 366 on the Bombay Stock Exchange.
