PVR to be No.1 multiplex co with R395-cr Cinemax deal
The deal will help PVR eclipse rivals Inox and Big Cinemas, giving it access to Cinemax’s 138 screens in 39 properties. PVR, which currently has about 213 screens in 46 properties, will have a total of 87,493 seats with the deal. Inox has 256 screens, while Big Cinemas has 254 screens.
Gurgaon-based PVR said it would pay Rs 203.65 a share to the Kanakia family through its subsidiary Cine Hospitality. The offer price is 16% higher than Cinemax’s closing price of R175.50 on Tuesday. Shares of Cinemax were up 5% at R184.25, while those of PVR shot up 8% to R255.50 on Thursday on the BSE as investors welcomed the acquisition.
The company also said in a notice to the BSE that it plans to buy a 26% stake in Cinemax from public shareholders through an open offer.
PVR has also announced a preferential issue of equity of 1,06,25,205 shares at a price of R245 per share amounting to R260 crore to promoters, existing investor — L Capital and new private equity investor — Multiples Alternate Asset Management (Multiples). Under the preferential issue of equity shares in PVR, Multiples will invest an amount of approximately R153 crore, L Capital would invest R82.3 crore and promoters would invest R25 crore into PVR. Post
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