Amarchand Mangaldas Delhi advised cinema chain PVR, which is buying rival chain Cinemax India by acquiring shares from the promoter – who are advised by Wadia Ghandy - and a subsequent open offer valued at around Rs 540 crore ($100m).
Amarchand Mangaldas Delhi managing partner Shardul Shroff led with partners Akila Agrawal, Kalpataru Tripathy and Pranav Sharma, assisted by principal associate Shruti Kinra, senior associate Digvijay Singh, and associates Tarun Mathur, Parika Ganeriwal and Anjali Puri.
Wadia Ghandy Mumbai-based partner Ashish Ahuja and senior associate Sayantani Dutta advsised the Kanaika family, which sold its entire 69.27 per cent share in Cinemax for Rs 394.97 crore.
The buy has triggered an open offer on 29 November for up to 26 per cent of shares in the company under the Substantial Acquisition of Shares and Takeovers Regulations, 2011 by the Securities and Exchange Board of India (SEBI).
PVR has a total of 213 screens at 46 venues across India with just over 50,000 seats, while Cinemax operates 138 screens at 39 theatres with an aggregate audience capacity of nearly 34,000.
The deal would make PVR the market leader ahead of the 256-screen Inox Fame cinema chain, but this would probably not constitute a PVR enjoying a “dominant position” in the market and therefore escape scrutiny by the Competition Commission of India (CCI), reported moneycontrol.
Axis Capital is acting as financial adviser to PVR.
Photo by Paul Hart