Indian liquor baron Vijay Mallya has completed the process of taking his U.S. IT services company UBICS private.
The process of taking UBICS private was accomplished through what’s called “a short-form merger under Delaware law.”
Like countless other American companies, UBICS too is incorporated in the mid-Atlantic state of Delaware on the U.S. East Coast because of favorable corporate policies.
Shares of UBICS, which were previously traded on the OTC Pink marketplace, have ceased to trade as of June 15, 2012.
UBICS – No Highs
Headquartered at Pittsburgh and with branches in Bangalore, Chennai, Pune and a few other cities, UBICS provides software consulting, application development and business process outsourcing services.
Although UBICS has been around for 19 years, the company never achieved anywhere near the extraordinary success of other Indian software service providers like Infosys, Wipro, TCS or HCL Technologies.
Vijay Mallya, the Chairman and CEO of UBICS, has a chequered business record.
Mallya’s liquor businesses (many started by his father Vittal Mallya) have been doing well but his foray into the airline business through Kingfisher Airlines has been a total disaster. In the last few months, the financially strapped airline has canceled several routes, failed to pay employees on time and owes thousands of of crores of Rupees to Indian financial institutions.