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Mumbai:
L Capital Eco Ltd, an international private equity fund, has
agreed to invest a total of Rs 1.07 billion in PVR Ltd, a
film exhibition and in-mall entertainment company.
The
definitive agreement signed by the two companies envisages
issue of 2,885,000 equity shares of PVR Ltd for Rs 577 million
(at a price of Rs 200 per share) to L Capital Eco on a preferential
basis.
The
preferential allotment will give the private equity investor
a 10 per cent stake in PVR. The approval of the shareholders
of PVR will be obtained through a postal ballot. PVR operates
179 movie screens across 24 cities.
The
price is at a 21 per cent premium to PVR's closing price of
Rs 165.95 on the National Stock Exchange on 31 July. PVR shares
rose 11.33 per cent to close at Rs 184.75 on 1 August.
PVR
and L Capital will also set up a new joint venture company
called PVR Leisure Limited, in which in-mall entertainment,
gaming, food and leisure businesses will be housed.
PVR
will transfer its holding in PVR bluO Entertainment Ltd to
PVR Leisure and L Capital will invest Rs 501 million in PVR
Leisure for an unspecified equity stake. The new joint venture
will be subject to approvals from Foreign Investment Promotion
Board (FIPB).
L
Capital Eco, a Mauritius-registered company, is a subsidiary
of L Capital Asia LLC, the Asian private equity business sponsored
by leading global luxury goods retailer LVMH.
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