PVR to raise Rs 42.19 crore through issue of 2557000 shares at Rs 165

PVR Ltd inter alia, has approved the issue of 25,57,000 Equity Shares of the Company on preferential basis at a price of Rs. 165/- per share (Includes Premium of Re. 155/- per share) aggregating to Rs. 42.19 Crore or at price to be determined as per SEBI (ICDR) Regulations, 2009 whichever is higher, to Major Cineplex Group Plc. of Thailand.

Major Cineplex Group Plc. is Thailand's leading lifestyle Entertainment Company with core business in multiplexes, film distribution, lifestyle neighborhood malls, bowling and karaoke, ice skating rink, fitness clubs and advertising media. Major Group is listed on the stock exchange of Thailand and currently operates about 350 multiplex screens, 500 bowling lanes, 300 karaoke rooms and 2 ice skating rinks. The Company had a turnover of approx. Rs 8050 mn. in 2008 with a Net profit of Rs. 907 mn Major Cineplex Group Plc. is also Joint Venture Partner with PVR in PVR bluO Entertainment Ltd.

The Board approved purchase of "Cinema Exhibition Business" of DT Cinema Ltd a DLF Group Company at a consideration to be met partly by issue of 25,57,000 Equity Shares of the Company on preferential basis to DT Cinema Ltd in accordance with SEBI (ICDR) Regulations, 2009 and partly by cash of Rs. 20.02 Crore.

The acquisition of "Cinema Exhibition Business" of DT Cinema Ltd will further enhance PVR's position as one of the leading multiplex operator in the country. Under the agreement in this connection, the partnership with DLF will give PVR an exclusive and unlimited access to the multiplex space in all future mall developments of DLF group. DT Cinemas has currently a portfolio of 29 Screens with 26 Screens operational and another 3 Screens expected to commence operations in the next 6 months. The said deal further re-affirms Company's strategy to rapidly grow in the film exhibition space and to be a dominant player in all key markets.

The Board also approved convening of Extra Ordinary General Meeting of the Company on December 16, 2009 to obtain necessary member's approval in this connection.

The PVR stock closed the day at Rs.142.60, up by Rs.2.80 or 2%. The stock hit an intraday high of Rs.152.95 and low of Rs.141.25.

The total traded quantity was 168147 compared to 2 week average of 83024.

Source : Equity Bulls

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