Shares of multiplex major PVR today jumped nearly 8 per cent to touch a one-year high level after the company entered into an agreement with Cinemax India to buy 69.27 per cent stake in the company for Rs 394.98 crore.
Following the announcement, shares of PVR shot up by 7.83 per cent to close the trade at Rs 255.45 on the BSE. During the day, the scrip gained 16 per cent to Rs 275 -- its 52-week high level.
At NSE, the stock closed at Rs 250.50, up 5.72 per cent from its previous close.
A similar upsurge was seen in Cinemax India counter. The stock ended 5 per cent higher at Rs 184.25 after hitting a record high of Rs 184.25 in intra-day on the BSE.
Multiplex chain operator Cinemax today said its promoters will sell their entire stake of 69.27 per cent in the company to PVR Ltd for Rs 394.98 crore.
PVR will also purchase additional up to 26 per cent stake from public shareholders through an open offer.
"The company has been informed by its promoters that they have entered into a definitive sale agreement with PVR Limited (through its wholly-owned subsidiary Cine Hospitality Private Ltd) for sale of their entire stake of 69.27 per cent in Cinemax India Limited," Cinemax said in a filing to the BSE.
"The sale has been completed for a total sale consideration of Rs 394.98 crore at a price of Rs 203.65 per equity share," the filing added.