PVR shares jump over 18 per cent on Cinemax deal

PVR shares extended gains for the second consecutive day on Friday, soaring over 18 per cent after 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, jumping 18.11 per cent to Rs 301.70 on the Bombay Stock Exchange (BSE). At the National Stock Exchange (NSE), the stock zoomed up by 18.46 per cent to Rs 298.70.

PVR had on Thursday 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.

An upsurge was seen in Cinemax India counter too. The stock closed Friday's trade at Rs 190.55 - up 3.45 per cent.

According to 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 take market leadership in the movie exhibition segment in India with a combined strength of 351 screens at 85 locations.

With inputs from PTI