Multiplex chain operator PVR on Tuesday said it has completed acquisition of a controlling stake in Cinemax India for Rs. 395 crore.
“PVR, through Cine Hospitality, has purchased controlling stake of Cinemax India through a block deal executed on the floor of the stock exchange on January 8,” PVR said in a filing to the Bombay Stock Exchange.
In November last month, 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 deal 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 size of the deal 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, whereas 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.