MUMBAI: Soon, all Cinemax movie screens around you may be converted to PVR. We hear that PVR Ltd, which is based in Delhi, is in talks with the promoters of Cinemax for a possible takeover.
In the current fiscal year, Cinemax stands to earn Rs 450 crores. This means that the company will be valued at almost Rs 600-700 crores.
PVR has officially made announcements regarding this potential move. “it is engaged in active discussions with the promoters of Cinemax India Limited for a potential purchase of their shares in Cinemax India Limited. However, no definitive agreements have been entered into in this respect.” Cinemax has issued a similar statement.
The promoters of Cinemax hold 69.27% stake in the company. Owners of Cinemax, the Kanakia group, has recently split the company interests into two separate verticals and companies. One is real estate and the other is exhibition business. The latter now comes under Cinemax India Ltd. This move may have come in anticipation of the sale.
Additionally, Reliance Media & Entertainment Fund recently spent Rs. 1.22 crores to buy 1.6 lakh shares in Cinema India Ltd, but it seems that RMEF will not want to buy out the company entirely because of the high stakes with Cinemax’s promoters.
A Little Math: As of today, Cinemax India has 39 properties and 138 screens. Of that total, in Mumbai and around the city, the company has properties in 14 locations and 45 screens. PVR, on the other hand, has 210 screen pan-India. Nitin Sood, CFO of PVR, had revealed in a recent interview, that the company aims to operate at least 500 screens. Surely, this merger will bring them closer to their target.
Competition includes Inox Leisure with Fame India, which has 256 screens and Big Cinemas with 254 screens across India.
