PVR will also purchase additional 26 percent stake in Cinemax from public shareholders through an open offer.
In a statement, PVR said: "The board of directors of PVR Limited today announced that it has entered into definitive agreements to acquire 69.27 percent stake in Cinemax India Limited, a Kanakia Group entity that operates movie exhibition business in India."
In a filing to the BSE, Cinemax said that "the company has been informed by its promoters that they have entered into a definitive sale agreement with PVR Limited (through its wholly-owned subsidiary Cine Hospitality Private Ltd) for sale of their entire stake of 69.27 percent in Cinemax India Limited".
"The sale has been completed for a total sale consideration of Rs.394.98 crore at a price of Rs.203.65 per equity share," the filing added.
The PVR board also approved purchase of up to 26 percent stake in Cinemax India from the public shareholders pursuant to an open offer under the SEBI regulations 2011, PVR said in a separate filing.
Shares of PVR ended at Rs.255.45, higher by 7.83 percent over its last close.
PVR runs 197 screens, while Cinemax operates 138 screens in 39 properties across the country.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app