Cinemax in talks to sell stake to PVR
Mumbai: Multiplex chain operator Cinemax on Tuesday said its promoters are in exclusive discussions with PVR for selling stake in the company.
"Cinemax India has been informed by its promoters that they are engaged in exclusive discussions with PVR for a potential sale of their shares in the company. However, no definitive agreements have been entered into in this respect," Cinemax said in a BSE filing.
In a similar filing, PVR also confirmed that it is in "active discussions with the promoters of Cinemax India" for a potential purchase of the company's shares.
PVR, one of the largest multiplex companies in the country runs 197 screens. For the year ended March 31, 2012, the company's total income stood at Rs 513.06 crore, up 11 percent from Rs 462.22 crore registered in the previous fiscal.
Cinemax, which is owned by the Kanakia Group, operates 138 screens across 39 properties in Ahmedabad, Panipat, Nagpur, Hyderabad, Kolkata, Mumbai, Thane, Bangalore and Pune among others, as per information on Cinemax website.
Cinemax's promoters -- the Kanakia family -- currently own over 69 percent in Cinemax, while Mavi Investment Fund and ICICI Prudential Life Insurance own another 7.91 percent in the company as on September 30, 2012.
Shares of PVR closed at Rs 236.90 apiece, down 3.42 percent, while Cinemax stocks closed at Rs 175.50, up 1.83 percent from their previous close on the BSE Tuesday.