PVR to acquire up to 95.27 pc stake in Cinemax for Rs 543 cr
According to the agreement, PVR's 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 for 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.
PVR is also raising Rs 260 crore through a preferential issue of equity shares to its promoters, existing investor, L Capital and new private equity investor, Multiples Alternate Asset Management (MAAM).
"Today, with the proposed acquisition of Cinemax, we hope to create the largest movie exhibition chain in India. We are excited about the synergy potential and cost benefits that accrue from the larger scale of operations of the combined network," PVR Chairman and Managing Director Ajay Bijli told reporters here.
The acquisition will help PVR have market leadership in the movie exhibition segment in India with a combined strength of 351 screens at 85 locations.
The PVR scrip today closed 7.83 per cent higher at Rs 255.45, while Cinemax shares closed at Rs 184.25, up 4.99 per cent from their previous close on the BSE.
PVR currently has 46 operational properties, with 213