PVR-Cinemax merger gets board go-ahead

New Delhi: Multiplex chain operator PVR Ltdtoday said its board has approved the merger of Cinemax Indiaand a wholly-owned subsidiary with the company.

The board of directors of the company at its meeting heldon June 7, 2013 approved in-principle the proposedamalgamation of Cinemax India Ltd, a Mumbai-based listed firmand Cine Hospitality Private Ltd, a wholly-owned subsidiary ofthe company, PVR said in a filing to BSE.

In a separate filing, Cinemax also said its board todayapproved "in-principle" the amalgamation of the company with PVR Ltd, the ultimate holding company.

[caption id="attachment_852303" align="alignleft" width="380"] PTI image[/caption]

The two companies said Haribhakti & Co and SSPA & Co, have been appointed as Joint Valuers for valuation of PVR Ltd and Cinemax India Ltd for determining the swap ratio for the proposed amalgamation.

More from Business

In January this year PVR had announced to acquire 69.27per cent stake from the promoter group of Cinemax in an allcash consideration of Rs 395 crore through its subsidiary CineHospitality.

Shares of PVR today closed at Rs 324.90, down 3.06 percent from the previous close on the BSE.However, Cinemax India shares closed at Rs 113.95, up3.03 per cent from the previous close.

PTI