Qube Cinema - UFO Moviez merger hits NCLT roadblock
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. Mumbai-based digital cinema distribution company UFO Moviez’ planned merger with Chennai-based Qube Cinemas Technologies has hit a major roadblock in the National Company Law Tribunal (NCLT). Keeping in mind shareholders’ interest, NCLT has refused to give its nod to the proposed scheme of arrangement and amalgamation between the two companies. “The whole scheme appears to be framed also for the purpose of evading the duly payable stamp-duty and to deny the shareholders at various levels their legitimate right of a proper valuation of the intrinsic share value along with goodwill,” V Nallasenapathy and Bhaskara Pantula Mohan, member judges of NCLT’s Mumbai chapter said in the order released last week. UFO Moviez had announced the merger in November 2017, with an aim to be the lea