The media had reports that UTV Toons, the animation division of the company may be merged with the UTV Motion Pictures business.
The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company.
UTV Software Communications Limited has vide its letter inter-alia stated, "We wish to clarify that the news item is speculative in nature and presently there is no such merger proposal discussed by the Board of Directors of the Company nor by the independent Board of Company's subsidiary i.e UMP Plc, a AIM listed company on the London Stock Exchange and the holding company for UTV Motion Pictures (Mauritius) Limited."
"Further, we wish to clarify that on an operational basis we constantly try and move our businesses up the value chain and over the last one and a half years have taken our animation business from being a pure outsourcing business for other producers, to now moving further up the value chain, from Television work to Motion pictures. In this context, we would look at the core strengths of the team members in a normal business sense but in no way does this represent any material restructuring, or shutting down or starting a business, as suggested in the media."
"We also have to inform you that, the Company as part of its corporate restructuring activity continuously keeps evaluating various strategic options including mergers, acquisitions, fund raising and no such activity as stated in the media has been discussed/adopted by the Board of Directors of the company and the possibility of any event happening in future cannot be ruled out. The Company will, as in the past, comply with its obligations and provide all material information, if any, at the appropriate time." -- www.nseindia.com
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