Caravan Talkies, which is owned by UFO Movies through its subsidiary is taking both Bollywood and regional films to the hinterlands of the country where there is no proper cinema hall. The company is also helping brands to promote their products through their screens in rural areas.
UFO Moviez India Limited (UFO) is a listed company and engaged in the business of digital cinema distribution and in-cinema advertising. It wants to a leader in big screen entertainment and entered into a merger transaction with Qube in 2017 which was blocked by NCLT in January 2019 and the decision is contested by UFO currently.
Valuable Digital Screens Private Limited (VDSPL) is engaged in the advertising business carried out through Caravan Talkies i.e. Caravan Talkies advertising business which contributes the major revenue for the company and exhibition business through Nova Cinemaz & Club Cinema.
Caravan Talkies; is a movie-on-wheels concept, wherein sundown non-ticketed shows (complimentary) are played at villages for India’s rural population situated in media dark areas. This platform provides an opportunity for brands to reach out and engage with rural audiences via consumer activations in a fun and receptive environment.
NOVA Cinemaz creates a one stop solution for the local populace to set-up movie theatres in their respective areas through a standardized model both in terms of infrastructure and experience. Club Cinema provides movie screenings of recently released films in clubs and community centers at private screens.
VDSPL (“demerged company”) is demerging its “Caravan Talkies advertising business” into UFO (“resulting company)” through the scheme of arrangement.
“Caravan Talkies advertising Business” means the divisions, undertaking, businesses, activities and operation of VDSPL relating to advertising, activation and other related activities carried out through fleet of caravans. These activities are carried out on an open caravan that shows free movies in rural areas, thus providing digital platform for marketing and reaching to larger rural audience for its clients.
The demerged company VDSPL is a wholly owned subsidiary of the Resulting Company as on the date of board approval.
Appointed date for the transaction is 1st April 2019.
Please Subscribe to read the full article.