44 crore) and an open offer.
Cinemax promoter Rasesh Kanakia said the company's exhibition business would benefit from consolidation as large scale strengthens competitive advantage as well as significantly enhances operational efficiencies.
"This transaction enables realisation of such benefits and would create significant value for all the shareholders of Cinemax. The deal will enable us to ensure greater focus on our real estate and hospitality businesses," Kanakia said.
On the fund raising, PVR said it will undertake a preferential issue of 1,06,25,205 equity shares at a price of Rs 245 per shares amounting to Rs 260 crore to its promoters, L Capital and new private equity investor, MAAM.
MAAM will invest about Rs 153 crore, L Capital about Rs 82.3 crore and the promoters would infuse about Rs 25 crore into the company, PVR CFO Nitin Sood said.
Post the above dilution, both MAAM and L Capital (from 10 per cent previously) would own about 15.8 per cent stake each. The promoters holding will come down to 32 per cent stake from 40 per cent earlier in PVR, Sood said.