Amarchand has advised PVR Ltd in its proposed acquisition of a 69 percent stake in rival Cinemax India, creating the country’s biggest operator of multiscreen movie theatres.
PVR will buy the stake for 203.65 rupees per share, for a total of 3.95 billion rupees, or $71 million. Listing rules indicate that separately PVR must then make an offer for up to 26 percent of Cinemax shares from public shareholders.
If accepted by regulatory authorities, the transaction will be valued at approximately 5.43 billion rupees.
Amarchand partner Shardul Shroff led the transaction, aided by partners Akila Agrawal, Kalpataru Tripathy, and Pranav Sharma. Associates Shruti Kinra, Digvijay Singh, Tarun Mathur, Parika Ganeriwal, and Anjali Puri also advised on the deal.
Wadia Ghandy & Co advised the Kanakia family, promoters of Cinemax India while Axis Capital was the financial adviser to PVR.
Reuters reports that Cinemax shares rose by their daily limit of 5 percent to close at 184.40 rupees when the deal was announced. Shares in PVR, which has a market capitalisation of 6.8 billion rupees, ended up 6.4 percent at 252.15 rupees after rising as much as 16 percent during the day to their highest level in four-and-half years.
PVR, which also operates a film distribution and production business, is expected to manage about 350 screens after the deal, compared with a little more than 200 now.
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