homevideos Newsfinance NewsPVR to issue 1.6 million shares to SPI, will release Rs 100 crore post regulatory nods, says Ajay Bijli
PVR to issue 1.6 million shares to SPI, will release Rs 100 crore post regulatory nods, says Ajay Bijli
PVR Cinemas will issue 1.6 million shares to SPI Cinemas, said Ajay Bijli, chief managing director of PVR, adding that Rs 100 crore will be released post the regulatory nods.
“In such a large transaction mostly all CPs are always met but one or two things are always something that can be done only post transaction," said Bijli.
“1.6 million equity shares have been issued which is part of the deal, those are not milestone linked or anything like that. It’s subject to merger, when the merger gets approved- that’s the time these shares will be issued. Roughly 3 percent equity will be held by the current promoters of SPI,” he added.
Multiplex chain PVR Ltd on Sunday announced its decision to acquire 71.69 percent stake in South India-based SPI Cinemas for about Rs 633 crore.
The acquisition involves buying of SPI's 61.65 percent from SS Theatres LLP and 10.04 percent equity from S V Swaroop Reddy.
“Both companies are running at a good EBITDA margin. We finished our year with 18.3 percent last year and SPI finished with 2.4. So the margins are only going to improve because they are at a very high occupancy of 58 percent, PVR at 32 percent,” added Bijli.
First Published: Aug 13, 2018 11:55 AM IST
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