India's PVR to buy majority stake in Cinemax for $71 mln

MUMBAI Thu Nov 29, 2012 4:35am EST

MUMBAI Nov 29 (Reuters) - Cinemax India Ltd, a theatre chain operator, said its controlling shareholders will sell a 69.27 percent stake in the company to local rival PVR Ltd for 3.95 billion rupees ($71 million).

PVR will buy the stake for 203.65 rupees a share, a premium of 16 percent to Cinemax stock's close on Wednesday.

Separately, PVR said it would buy up to 26 percent more of Cinemax shares from public shareholders through a mandatory open offer. The price of the offer was not immediately known. ($1 = 55.5250 Indian rupees) (Reporting by Aradhana Aravindan; Editing by Gopakumar Warrier)