PVR Cinemas, on Tuesday, announced the acquisition of multiplex chain DT Cinemas, a subsidiary of real estate developer DLF, on a slump-sale basis for Rs.500 crore. The move is likely to help the company cement its position as country’s largest cinema exhibition firm.
A ‘definitive agreement’ was signed post the approval by PVR’s board at a meeting held on Tuesday. PVR, in 2009, had also agreed to buy DT Cinemas but the deal fell through in February 2010.
With this deal, PVR will acquire DT Cinemas’ 39 screens (29 operational and 10 proposed) in the National Capital Region and Chandigarh. |
PVR, in 2009, had also agreed to buy DT Cinemas but the deal fell through in February 2010. |
“It has been our strategy to expand our film exhibition business both organically and inorganically over the years,” Ajay Bijli, Chairman and Managing Director, PVR Ltd., said.
This is the second major acquisition by the theatre chain after it acquired Cinemax for Rs. 395 crore in 2012.
With this deal, PVR will acquire DT Cinemas’ 39 screens (29 operational and 10 proposed) in the National Capital Region and Chandigarh. As a result of the proposed acquisition, PVR will have a presence in 44 cities with 115 multiplexes and 506 screens, PVR said in a statement.
For DLF, the country's largest realty firm, the deal is part of its strategy to exit non-core businesses and cut huge debt of over Rs.20,000 crore. It has already sold hotel chain Aman Resorts as well as insurance and wind power businesses.
“The deal is in line with our strategy to focus on our core business and divest non-core businesses or assets. It shall provide the management a more focussed approach for enhancing value especially in our retail mall business,” Saurabh Chawla, Senior Executive Director, DLF Ltd., said.
EY India and Luthra & Luthra were the financial and legal advisors, respectively, to DLF, and Shardul Amarchand Mangaldas & Co was the legal advisor to PVR on the transaction.
The proposed transaction, however, will be subject to approval of applicable statutory and regulatory approvals and satisfaction of customary conditions precedent.
