PVR Ltd has announced with reference to the approval granted by the Board of Directors of the PVR Ltd (the “Company”) for purchase by the Company of the ‘cinema exhibition business’ of DT Cinemas Ltd (a DLF Group Company) (the “Acquisition”). The consideration for the Acquisition was to be met partly in form cash of Rs. 20.20 Crore and partly by issuance of 25,57,000 equity shares of the Company to DT Cinemas Ltd on a preferential basis in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.
The company had deferred the issuance of shares to DT Cinemas Limited due to certain pending compliances by DT Cinemas Limited for successful completion of the Acquisition.
As per the terms of the agreement for the Acquisition dated November 13, 2009 between the Company and DT Cinemas Ltd (the “Acquisition Agreement”), the Acquisition Agreement stands automatically terminated if the conditions precedent for the Acquisition are not satisfied within 60 days of the date of Acquisition Agreement (the “Long Stop Date” as defined under Business Transfer Agreement dated November 13, 2009), unless such period has been mutually extended by the parties to the Acquisition Agreement.
Both the parties have mutually agreed to extend the Long Stop Date until February 15, 2010.
— IndiaRetailing Bureau