UFO Moviez, Qube Cinema merger hits NCLT roadblock
Tribunal dismisses merger request, calls the scheme ‘unfair and unreasonable’.
Excerpts
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setting an example of protecting shareholders’ interest, NCLT has rebuked UFO Moviez India dismissing its “framed” attempt for amalgamation as the dedicated court prioritised shareholders’ worth.
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“This bench explored all the real intentions and to identify the genuineness, if any, of the scheme. Honestly, the answer is a big NO,” the order said. “Now, we are of the considered view that the Petition deserves no positive consideration and has to be dismissed on all accounts,” the order said adding that judges are not against any business combinations, mergers or any proposition that would make the investors, promoters and shareholders more and more profitable.
The Petitioners, underestimating the prudence and ability of the system, made an intelligent attempt to test the depth of the water by flouting various laws, the judges said.
The scheme, tribunal observed is “intelligently devised to contravene the provisions of Section 68 of the Companies Act, 2013 and is influencing the stock market, which affects public interest”.
It is also observed that the amalgamation of Qube Digital Cinema with UFO Moviez India does not enjoy the support of 53.20% of the shareholders of Qube Digital Cinema Private Limited.
A very damning judgement, personally was a bit disappointed with all the structures and now this confirms. Unfortunately, invested and will look to get out.