UTV Software Communications Ltd has resolved to transfer all its Motion Picture Production activities -Domestic and International - into one of its overseas subsidiaries, which will move to get listed on the Alternative Investment Market (AIM) of the London Stock Exchange.
UTV's present Hollywood motion picture business including co-productions like Mira Nair's 'The Namesake', Chris Rock's 'I think I Love My Wife', Will Smith and now M Night Shayamlana's 'The Happening' and its worldwide distribution activity of Indian movies including, were a part of its overseas subsidiaries. Company's film production businesses worldwide (including the movie production slate of Indian Movies) will be part of the listed entity going forward. .
Mr. Ronnie Screwvala, Chairman, UTV Software Communications Ltd explains - the transfer and overseas listing, " The reasons are manifold
(a) We have matured our Movie Studio business to a LEADERSHIP position both in South Asia and globally and we need to unlock value for our UTV shareholders.
(b) In India we are constantly benchmarked with "pure play" Hindi movie producers - and our Movie model is far more Robust, Stable and Global than anyone in South Asia and we believe that international investors on overseas stock exchanges understand such a mature model better.
(c) Of course we will produce more Indian Movies than international ones- but -in 2 years OVER 50% of our motion picture revenues will come from International markets.
(d) Some US Studios are in advanced stages with us - in their interest to partner with us in India and an overseas structure supports this alliance.
(e) It is our intent to position UTV Motion Pictures as a Global Indian Movie Major and so our overseas listing will facilitate M&A's, Alliances and JVs in the main international markets with global film companies.
Adds Mr. Screwvala "With our close association with global creative brands like Mira Nair, Chris Rock, Will Smith, M Night Shyamalan, Rakeysh Omprakash Mehra, Ashutosh Gowariker & Vishal Bhardwaj - along with media majors like Fox, Disney and Sony - we are very uniquely positioned as an Indian company in the international marketplace."
