PVR jumps 30.55% in 3 days on acquisition of Cinemax India

Meanwhile, the BSE Sensex was up 48.46 points or 0.25% at 19,353.78.

On BSE, 2.63 lakh shares were traded in PVR counter as against average daily volume of 98,939 shares in the past one quarter.

The stock hit a high of Rs 341.10 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 322.15 so far during the day. The stock had hit a 52-week low of Rs 115.55 on 19 December 2011.

The stock had outperformed the market over the past one month till 3 December 2012, surging 40.49% compared with the Sensex's 2.93% rise. The scrip had also outperformed the market in past one quarter, jumping 74.89% as against Sensex's 11.05% surge.

The company has equity capital of Rs 28.98 crore. Face value per share is Rs 10.

Shares of PVR have rallied 30.55% in three trading sessions from Rs 255.45 on 29 November 2012, after the company during trading hours on 30 November 2012 said it has entered into definitive agreements to acquire 69.27% stake in Cinemax India, a Kanakia Group entity that operates movie exhibition business in India. The acquisition of Cinemax India is carried out through PVR's wholly owned subsidiary, Cine Hospitality (CHPL). CHPL would be acquiring 69.27% stake owned by the promoter group of Cinemax India at Rs 203.65 per share for an all cash consideration of Rs 395 crore.

PVR on 29 November 2012 also announced a mandatory open offer to the shareholders of Cinemax India for acquisition of up to 72.80 lakh equity at Rs 203.65 per share, representing 26% of the fully diluted voting equity share capital of Cinemax India.

PVR also announced a preferential issue of 1.06 crore equity shares at Rs 245 per share, amounting to Rs 260 crore to promoters, existing investor -- L Capital -- and new private equity investor -- Multiples Alternate Asset Management (Multiples). Under the preferential issue of equity shares in PVR, Multiples will invest an amount of approximately Rs 153 crore, L Capital would invest approximately Rs 82.3 crore and promoters would invest approximately Rs 25 crore into PVR. Post the above dilution, both Multiples Private Equity and L Capital would own approximately 15.8% stake each in the company and promoters will hold 32% stake in PVR, the company said in a statement.

PVR said the acquisition of Cinemax India will create the largest movie exhibition chain in India with a combined strength of 351 screens at 85 locations with a total capacity of 84,190 seats. This will also give PVR a leadership position in 10 key markets across the country. PVR operates multiplexes under the brand name 'PVR' cinemas. It currently has 46 operational properties, with 213 screens and a seating capacity of 50,655 seats. Cinemax has 39 operational properties, with 138 screens and a seating capacity of 33,535 seats.

PVR's consolidated net profit rose 13.3% at Rs 16.09 crore on 36.8% growth in net sales to Rs 189 crore in Q2 September 2012 over Q2 September 2011.

Cinemax India's consolidated net profit jumped 69.45% to Rs 15.81 crore on 21.47% growth in net sales to Rs 110.77 crore in Q2 September 2012 over Q1 June 2012.

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