PVR shares jump over 10% on Cinemax India stake sale deal
The company entered into an agreement with Cinemax India to acquire up to 95.27 per cent stake in the company for Rs 543 crore.
Defying a weak opening, the stock made a smart comeback, gaining 9 per cent to touch a 52-week high of Rs 278.60 on the BSE.
At NSE, the stock zoomed up by 10.56 per cent to Rs 278.80.
A similar upsurge was seen in Cinemax India counter. The stock shot up by 5 per cent to Rs 193.45, its record high level on the BSE.
PVR yesterday had said it would acquire up to 95.27 per cent stake in Cinemax India, a Kanakia Group firm which is into movie exhibition business in India, in a deal worth about Rs 543 crore.
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.
The acquisition will help PVR has market leadership in the movie exhibition segment in India with a combined strength of 351 screens at 85 locations.
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