PVR to buy out Cinemax promoters' shares

PVR will shell out Rs 395 crore at Rs 204 per share to buy 69.27% stake

Gurgaon-based multiplex major PVR Ltd is buying promoters' shares in rival Cinemax India Ltd at Rs 203.65 per share. PVR will end up paying Rs 395 crore to take up 69.27% stake in the company.

"The Board of Directors of the Company at its meeting held on November 29, approved, subject to receipt of relevant consents under applicable law, the purchase of entire 69.27% stake in Cinemax India Limited from the Kanakia family, promoters of Cinemax India Limited at a per share price of Rs 203.65 and a total consideration of Rs 394.97 crore through Cine Hospitality Private Limited, a wholly owned subsidiary of the company," PVR said.

 

The PVR board has also approved an open offer for additional 26% shares.

Shares of Cinemax touched a new high and breach the upper circuit at Rs 184.25 at the BSE, at the time of filing this report. PVR shares also jumped 13% and wwere trading at Rs 269.1 per share.