PVR to acquire up to 95.27 pc stake in Cinemax for Rs 543 cr
- India, China call for end to incursion issue, sign 8 deals to boost ties
- Aarushi murder case: Rajesh Talwar claims he was asleep when killings took place
- Railgate: BJP protests against CBI DIG for shielding Pawan Bansal
- Spot-Fixing: Sreesanth reveals bookies lured India players with cars, women
- Jagan Reddy case: Accused Andhra ministers Sabitha, Dharmana Rao resign
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 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.
- Former Ranji player among 3 more held
- Rajasthan Royals to file FIR against tainted trio
- If found guilty, BCCI to ask ICC to erase Sreesanth records
- Top cops among 42 named in death of blast accused
- Manmohan-Li talks: PM takes tough line on incursion issue
- Security forces blame Maoists, villagers say CoBRA man was killed in 'friendly fire'