PVR to purchase over 69 percent stake in Cinemax

Last Updated: Thu, Nov 29, 2012 17:00 hrs

New Delhi, Nov 29 (IANS) Multiplex chain operator PVR will purchase 69.27 percent stake in Cinemax India Limited, which is also in movie exhibition, PVR announced Thursday.

PVR will also purchase additional 26 percent stake in Cinemax from public shareholders through an open offer.

In a statement, PVR said: "The board of directors of PVR Limited today announced that it has entered into definitive agreements to acquire 69.27 percent stake in Cinemax India Limited, a Kanakia Group entity that operates movie exhibition business in India."

In a filing to the BSE, Cinemax said that "the company has been informed by its promoters that they have entered into a definitive sale agreement with PVR Limited (through its wholly-owned subsidiary Cine Hospitality Private Ltd) for sale of their entire stake of 69.27 percent in Cinemax India Limited".

"The sale has been completed for a total sale consideration of Rs.394.98 crore at a price of Rs.203.65 per equity share," the filing added.

The PVR board also approved purchase of up to 26 percent stake in Cinemax India from the public shareholders pursuant to an open offer under the SEBI regulations 2011, PVR said in a separate filing.

Shares of PVR ended at Rs.255.45, higher by 7.83 percent over its last close.

PVR runs 197 screens, while Cinemax operates 138 screens in 39 properties across the country.

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