IndianMascot
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Ajay Bijli-led PVR Ltd, which pioneered the multiplex business in India 15 years ago, is set to buy out the 141-screen multiplex chain Cinemax owned by the Kanakia Group, making PVR the country's largest mutiplex operator.
The deal, expected to close next week, will be executed in two stages. PVR will buy out Cinemax's promoters, Rashesh Kanakia and his family, who currently own a little over 69%, followed by an open offer for another 26%, said two people familiar with the developments.
ICICI Prudential, with a 6.70% holding, and Mavi Investment Fund, with 1.20%, are significant institutional stakeholders as on September 30. The bulk of the promoter holding is pledged with financial institutions, but the Kanakias have been revoking the pledged shares to free them.
FINAL TALKS OVER PRICE STILL ON
The final negotiations over pricing are still on, but PVR has offered Rs 170-180 per share to buy out the promoters. This is a premium of 6.25-12.5% to the current trading price of Cinemax, which closed on Thursday at Rs 160, up nearly 5% on both the BSE and NSE.
The stock has run up 150% in the past one month on the back of the impending deal.
Wish to Read Further, Click -----> Here
The deal, expected to close next week, will be executed in two stages. PVR will buy out Cinemax's promoters, Rashesh Kanakia and his family, who currently own a little over 69%, followed by an open offer for another 26%, said two people familiar with the developments.
ICICI Prudential, with a 6.70% holding, and Mavi Investment Fund, with 1.20%, are significant institutional stakeholders as on September 30. The bulk of the promoter holding is pledged with financial institutions, but the Kanakias have been revoking the pledged shares to free them.
FINAL TALKS OVER PRICE STILL ON
The final negotiations over pricing are still on, but PVR has offered Rs 170-180 per share to buy out the promoters. This is a premium of 6.25-12.5% to the current trading price of Cinemax, which closed on Thursday at Rs 160, up nearly 5% on both the BSE and NSE.
The stock has run up 150% in the past one month on the back of the impending deal.
Wish to Read Further, Click -----> Here