Multiplex chain operator PVR in talks to buy stake in Cinemax India

Multiplex chain operator PVR yesterday said in a filing with the Bombay Stock Exchange that it is in exclusive talks with the promoters of Cinemax India for a potential  stake purchase in the company.

In a similar filing, Mumbai-based Cinemax said, "Cinemax India has been informed by its promoters that they are engaged in exclusive discussions with PVR for a potential sale of their shares in the company. However, no definitive agreements have been entered into in this respect."

PVR, one of India's largest multiplex chain operator, runs 197 screens in 44 cinemas in 13 states and 27 cities across India and plans to open 500 screens by 2015.

The Gurgaon, Haryana-based company posted net income of Rs513 crore, up 11 per cent from Rs 462 crore in the previous year.

Cinemax, which is 69.27 per cent owned by the Kanakia Group, operates 138 screens across 39 cinemas in Ahmedabad, Panipat, Nagpur, Hyderabad, Kolkata, Mumbai, Thane, Bangalore and Pune among others.

Other stakeholders in the company are Mavi Investment Fund and ICICI Prudential Life Insurance, who hold a combined 7.91 per cent.