Cinemax India Ltd, a theatre chain operator, said its controlling shareholders will sell a 69.27 per cent stake in the company to local rival PVR Ltd for Rs 3.95 billion.

PVR will buy the stake for Rs 203.65 a share, a premium of 16 percent to Cinemax stock's close on Wednesday.

Separately, PVR said it would buy up to 26 percent more of Cinemax shares from public shareholders through a mandatory open offer. The price of the offer was not immediately known.