Mumbai, Nov 30: Extending gains for the second consecutive day today, shares of multiplex major PVR soared over 10 per cent today 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, gaining 9 per cent to touch a 52-week high of Rs 278.60 on the BSE. On the NSE, the stock zoomed up 10.56 per cent to Rs 278.80.
A similar upsurge was seen in Cinemax India counter. The stock shot up 5 per cent to Rs 193.45, its record high level on the BSE.
PVR had yesterday said that 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 Rs 203.65 for an all cash consideration of Rs 395 crore.
As per SEBI rules, this will be followed by an open offer for an additional 26 per cent (up to 72.8 lakh equity shares) at Rs 203.65 per share, taking the total deal size to about Rs 543 crore.
The acquisition will help PVR, which has a market leadership in the movie exhibition segment with a combined strength of 351 screens at 85 locations.