PVR rallies on Cinemax buyout report

The board approved the purchase of entire promoter?s shares in Cinemax India at price of Rs 203.65 per share.

PVR Limited has rallied 12% to Rs 265 after its board approved the purchase of entire promoter’s shares in Cinemax India at price of Rs 203.65 per share. The acquisition price is 10.4% higher than the current market price of Cinemax India of Rs 184.40 on the NSE.

“The board of directors of the company at its meeting held on today approved the purchase of entire 69.27% stake in Cinemax India from the Kanakia family, promoters of Cinemax India at a per share price of Rs 203.65,” PVR said in a statement.

“PVR will buy the stake for total consideration of Rs 395 crore through Cine Hospitality Private Limited, a wholly owned subsidiary of the company,” it added.

 

The board also approved purchase of up to 26% stake of Cinemax India from the public shareholders pursuant to an open offer.

The stock opened at Rs 237 and hit a low of Rs 222 on the BSE. As many as a combined 1.72 million have already changed hands so far against an average 150,000 shares that were traded daily in past ten trading days.