UTV Software advances on getting board nod for stake acquisition

UTV Software Communications is trading in the green on the BSE after the company received the approval of its board of directors to acquire the balance stake in its UK-based motion picture arm – UMP Plc – in a move to enhance shareholder value.

The scrip is currently trading at Rs 389.50 per share, up 23.50 points or 6.42% on the BSE.

The stock opened at Rs 374.90 as compared to its previous close of Rs 366. Intraday, the counter touched a high and a low of Rs 399 and Rs 374.40, respectively.

So far, 30,174 shares of the company were traded on the BSE.

The stock touched its 52-week high of Rs 830 on August 13, 2008 and a 52-week low of Rs 182 on March 6, 2009.

The stock has gained 21.55% since the past one week and 2.41% since the last one month.

UTV Software (UTV), with a presence in media and entertainment business, has received the approval of its board of directors to acquire the balance stake in its UK-based motion picture arm – UMP Plc – in a move to enhance shareholder value.

As per the company’s filing with the BSE, UTV, which currently holds 76.82% sake in the overseas arm, will acquire the balance 76.82% stake offering one equity share in the company for every 3.75 shares in UMP. The board also approved the merger of UTV Mauritius into the company.

Following the consolidation, UTV would have full ownership of the motion picture business, which would help the company to raise funds, when needed.