PVR to acquire up to 95.27 pc stake in Cinemax for Rs 543 cr
screens and a seating capacity of 50,655 seats. Cinemax has 39 operational properties, with 138 screens and a seating capacity of 33,535 seats.
Asked if Cinemax would be delisted, Bijli said there were no such plans. "The two brands -- PVR and Cinemax – would continue to exist independently. We are still working on the details of how to take it forward," he added.
Bijli said the cinema exhibition space was ready for consolidation and that it would continue to look for opportunities.
In February 2010, another cinema chain Inox had bought majority stake in Fame India by buying promoter stake (for Rs 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
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