UFO Moviez Acquires Digital Cinema Deployment Business from UMW for ₹12 Crores
Team Finance Saathi
20/Nov/2024

What's covered under the Article:
- UFO Moviez acquires UMW’s digital cinema deployment business for ₹12 crores on a slump sale basis.
- Non-compete and non-solicit agreements signed with UMW, its promoters, and key personnel.
- Board meeting confirmed the acquisition, complying with SEBI disclosure norms.
In a strategic move to bolster its position in the digital cinema industry, UFO Moviez India Limited has entered into a Business Transfer Agreement (BTA) with United Mediaworks Private Limited (UMW). The acquisition involves the digital cinema deployment business of UMW being transferred to UFO Moviez as a going concern on a slump sale basis, with a total consideration of ₹12 crores.
Details of the Agreement
The agreement, approved in a board meeting held on November 20, 2024, outlines the acquisition of UMW’s business undertaking. Additionally, a non-compete agreement has been signed with UMW, its promoters, and key personnel, further solidifying UFO Moviez’s competitive edge in the market. The slump sale ensures a seamless transfer of assets and operations without disrupting ongoing business activities.
Financial and Strategic Implications
The acquisition cost of ₹12 crores includes a non-compete fee of ₹1 crore. This transaction is expected to significantly enhance UFO Moviez's digital cinema deployment capacity, enabling the company to expand its footprint in the Indian digital entertainment space. By acquiring UMW's business, UFO Moviez strengthens its operational capabilities and gains access to UMW’s customer base, further consolidating its leadership position.
Non-Compete and Other Terms
As part of the agreement:
- UMW and its promoters have agreed to refrain from engaging in competing businesses.
- Key personnel of UMW are bound by non-solicit clauses, ensuring stability in operations post-acquisition.
- The agreement does not involve any related party transactions, adhering to all SEBI regulations and Listing Obligations.
Regulatory Compliance
This acquisition complies with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the details have been disclosed as per SEBI’s guidelines. The transaction highlights UFO Moviez’s commitment to transparency and adherence to regulatory norms, ensuring investor confidence.
Board Meeting Insights
The Board of Directors of UFO Moviez convened on November 20, 2024, from 9:00 AM to 9:35 AM, to deliberate and approve this strategic acquisition. The decision underscores the company’s intent to capitalize on growth opportunities within the rapidly evolving digital entertainment ecosystem.
Future Prospects
With this acquisition, UFO Moviez India Limited is well-positioned to scale its operations and enhance its market presence. This move aligns with the company’s vision to dominate the digital cinema industry and cater to the increasing demand for digital entertainment solutions across India.
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