UTV Software Communications Ltd. said on Friday that its British subsidiary UTV Communications (UK) Ltd. has acquired a controlling stake, constituting 62.42% of the issued share capital of Indiagames from Tom Online Games Ltd.
Simultaneously, the company has also acquired a 12.11% equity stake in Indiagames by subscribing to the latter's share capital. In addition, UTV UK has an obligation to subscribe to additional shares amounting to 8% of the equity share capital of Indiagames for US$1.5mn.
With this, UTV Software, along with its UK subsidiary hold about 66.97% of the existing capital of Indiagames. The total investment after the additional subscription will be about Rs424mn in Indiagames.
The key management of Indiagames has been granted certain management options. Upon exercise of such management options, UTV UK's shareholding in Indiagames will be approximately 60% of the equity share capital of Indiagames.
On December 8, 2006, UTV Software had entered into an arrangement with Indiagames and its promoters for the acquisition of the latter's controlling stake for about Rs680mn.
Source: India Infoline