PVR acquires controlling stake in Cinemax India

Multiplex chain operator PVR today said it has completed acquisition of a controlling stake in Cinemax India for Rs 395 crore.

"PVR, through Cine Hospitality, has purchased controlling stake in the share capital of Cinemax India through a block deal executed on the floor of the stock exchange on January 8, 2012," PVR said in a filing on the BSE.

In November 2012, PVR had said its wholly-owned subsidiary Cine Hospitality would acquire 69.27 per cent stake owned by the promoter group of Cinemax at a price of Rs 203.65 in an all cash consideration of Rs 395 crore.

As per SEBI rules, this will be followed by an open offer for an additional 26 per cent (up to 72.80 lakh equity shares) at Rs 203.65 per share, taking the total deal size to about Rs 543 crore.

Ajay Bijli and Sanjeev Kumar will join Cinemax board as non-independent directors, while Sanjay Khanna will be an indepedent director, according to a filing by Cinemax.

PVR shares closed 10.45 per cent higher at Rs 308.10, from the previous close on BSE.

However, Cinemax India shares closed at Rs 198.40 apiece, down 1.12 per cent from the previous close.

PVR has become the country's largest mutiplex operator with a combined strength of 351 screens at 85 locations.

PVR, one of the largest multiplex companies in the country, had 46 operational properties, with 213 screens and a seating capacity of 50,655 seats. Cinemax had 39 operational properties, with 138 screens and a seating capacity of 33,535 seats.

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