Daily News - 30 Nov (Part-2)

PVR announced acquiring 69 percent stake in Cinemax to expand its presence
PVR, the multiplex chain operator in India, announced on 29 November 2012 that it would acquire  69.3 percent stake in Cinemax India for an amount of 395 crore Rupees in order to enhance its presence in India. Cinemax owned by Kanakia Group has its ventures in hospitality, education as well as real estate sectors.
This deal would make PVR the largest multiplex chain in India. The promoters’ stake of Cinemax would be acquired by PVR at a cost of 203.65 Rupees per share via Cine Hospitality, the fully owned subsidiary. Additionally, PVR would acquire 26 per cent stake via the open offer from the public shareholders, as per the takeover regulations of SEBI.
The acquisition would give PVR an access to eight markets additionally. At present, PVR has 213 screens in the country which would increase to 351 screens after acquisition. By the time this fiscal year ends, PVR has plans to expand the number of screens to 400.  In 2013-2014, PVR is planning expansion of its venture to 45-50 cities in India.

Funding
The deal is scheduled to be funded by mix of equity as well as debt. The board of PVR also approved issuing preference shares. 25 crore Rupees would be invested by promoters. L Capital, the private equity investors would invest around 82.3 crore Rupees. Multiples Alternate Asset Management would be investing 153 crore Rupees approximately.
L Capital has 10 percent venture in PVR. After this acquisition, Multiples as well as L Capital would have 15.8 percent business in PVR. The promoters’ stake would be reduced from 40 percent to 32 percent. Open offer to Cinemax’s public shareholders for extra 26 percent stake for cash would follow this acquisition.

About PVR
PVR is the Gurgaon-based company. PVR stands for Priya Village Roadshow. It is one of the largest multiplexes in India. Commercial operations of PVR commenced in 1997 and since then, it brought a transition to the experience of cinema viewing in India. The first multiplex in India was PVR Anupam located in Saket, New Delhi.

SAT Declined Accepting Sahara Investor Money, Also Dismissed The Plea
The Securities Appellate Tribunal (SAT) on 29 November 2012 dismissed appeals of two

 Sahara companies- Sahara India Real Estate Corp (SIRECL) and Sahara Housing Investment Corp (SHICL) against SEBI. Sahara wanted SAT to intervene in the issue of refunding the money of investors which is aggregating to around 24000 crore Rupees.  The Sahara companies had indicted SEBI on the grounds that it had wrongly charged the two for not abiding by the order given by the Supreme Court in context with the refunds to around 3 crore investors. After the order of SAT, the Sahara lawyer opined that SIRECL and SHICL offered the payment of 5120 crore to SAT because SEBI did not accept it, but it was also not accepted by SAT in reference to the decision of Supreme Court. On 29 November 2012, SAT have order that any further directions would only be given by the SC and therefore it dismissed the appeal. SAT also mentioned that contempt petition filed by SEBI as well as the review petition by the two Sahara companies against SC order given on 31 August 2012 were also pending before SC.

Arctic Sea Ice Melting Area Larger Than the Area of US
UN weather agency claimed that the area of Arctic Sea ice, which even huger than the US had melted in 2012. It demonstrated that climate change was very evident. The report by UN weather agency was released at the UN climate talks which are taking place in Doha, Qatar at present. World Meteorological Organization (WMO) claimed that this Arctic sea ice melting was extreme and record-breaking which had hit the Earth in 2012. The instances of climate change were very much evident this year because droughts ruined almost 2/3rd of United States and western Russia as well as southern Europe. On the other hand, floods swamped West Africa. Heat waves were leaving Northern Hemisphere scorching. However, what dominated over everything was that the ice cover was reaching record lowest, especially in North Pole from March to September. The area of ice melt was 11.83 million square kilometers, which is even larger than the area of US.
WMO has the concern that the rate at which ice is melting is alarming and the changes are evident in turn on the oceans and biosphere of Earth. The reason why this is happening is because of the increasing concentration of greenhouse gases in atmosphere, which is reaching record high.There is an attempt to ensure that temperature does not rise over 2°C in the preindustrial times. As of now, the temperatures have risen around 0.8°C.

Biggest Ever Black Hole Discovered in the Small Galaxy NGC 1277
Astronomers claimed that they have discovered the biggest ever black hole in the small galaxy called NGC 1277 which is situated around 250 million light years away from our planet. This galaxy constitutes the mass equal to 17 billion suns. The biggest ever black hole sits in the NGC 1277 galaxy in Perseus constellation. This gigantic black hole forms around 14 percent of the mass of host galaxy. When compared with the 0.1 per cent of the usual black hole, this massive black hole adds the mass which is equal to 17 billion suns. The NGC 1277 galaxy as well as many others would alter the theories about how these galaxies and black holes evolve. This galaxy is merely 10 percent of the mass as well as size of the Milky Way, the galaxy in which Earth is situated. Even though the size of NGC 1277 galaxy is small, but the gigantic black hole which sits in the galaxy is 11 times wider as the orbit of Neptune around the Sun.A team member of the discovery at The University of Texas at Austin claimed that the galaxy is almost the black hole and possibly this was the first object in the genre of galaxy-black hole systems. Apart from this, the gigantic black holes were also observed in huge blobby galaxies known as ellipticals. Astronomers observed that at the moment there were three mechanisms which explained association of black holes with the properties of their host galaxies. However which of these theories best explains the association is still under confusion. The primary issue is the lack of proper data. Astronomers merely have the mass of less than 100 black holes found in the galaxies. However, measuring the mass of black holes is time consuming and cumbersome at the same time. Consequently, the astronomers have developed Hobby-Eberly Telescope Massive Galaxy Survey in order to know about the galaxies which are worth following up. Astronomers studied about 700 galaxies out of 800 using their telescope.

Brazilian Football Confederation appointed Luiz Felipe Scolari as the Coach of Brazil
The Brazilian Football Confederation (CBF) on 29 November 2012 appointed Luiz Felipe Scolari as the Coach of Brazilian Football team. Luiz replaced Mano Menezes who was sacked from his position in the third week of November 2012. Luiz Felipe Scolari would be leading the team as its coach also during the 2014 FIFA World Cup scheduled to take place in Brazil. Before this in the 2002 FIFA World Cup held in South Korea and Japan, Luiz Felipe Scolari led the Brazilian side as its coach, the team which was declared the winner of the tournament. His recent recruitment at the position of coach would give him a time of 18 months to guide the Brazilian Football Team to win the next World Cup at its home. He would be guiding the team during the FIFA Confederations Cup that is scheduled to be organized in June 2013 in Brazil.