Just a day after Cinemax put to rest speculation that it is on the block, the name of another likely suitor for the theatre chain has propped up.
According to a report in the Economic Times today, PVR is set to buy out the 69 percent stake owned by Cinemax’s promoters, Rashesh Kanakia and his family for Rs 500 crore. The takeover will be followed by an open offer for another 26 percent, the report said.
With the deal, which is expected to be closed next week, PVR will become India’s largest multiplex operator, the report said.
Shares of PVR are, however, trading marginally higher at 0.04 percent.
Cinemax shares are up 5 percent on the bourses today at Rs 167.80. The stock is up 163.63% in the last month on the back of the impending deal. It has more than doubled from Rs 77 since 29 October , after Reliance Media & Entertainment Fund had acquired 158,097 Cinemax shares for Rs 1.22 crore.
Earlier reports said that other multiplex players Inox Leisure, and Cinepolis India are also interested in Cinemax , which fuelled such speculative activity in the counter.
Earlier also Inox and Reliance ADA Group were both in the race to buyout Fame India, another multiplex chain , but the deal was ultimately bagged by Inox.