Multiplex chain operator PVR today said it has completed acquisition of a controlling stake in Cinemax India for Rs 395 crore.
"PVR, through Cine Hospitality, has purchased controlling stake in the share capital of Cinemax India through a block deal executed on the floor of the stock exchange on January 8, 2012," PVR said in a filing on the BSE.
In November 2012, PVR had said its wholly-owned subsidiary Cine Hospitality would acquire 69.27% stake owned by the promoter group of Cinemax at a price of Rs 203.65 in an all cash consideration of Rs 395 crore.
As per SEBI rules, this will be followed by an open offer for an additional 26% (up to 72.80 lakh equity shares) at Rs 203.65 per share, taking the total deal size 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% higher at Rs 308.10, from the previous close on BSE.
However, Cinemax India shares closed at Rs 198.40 apiece, down 1.12% from the previous close.
PVR has become the country's largest mutiplex operator with a combined strength of 351 screens at 85 locations.
PVR, one of the largest multiplex companies in the country, had 46 operational properties, with 213 screens and a seating capacity of 50,655 seats. Cinemax had 39 operational properties, with 138 screens and a seating capacity of 33,535 seats.
