New Delhi : PVR Ltd. has announced that it has reached an agreement with DLF Group’s DT Cinemas to acquire their cinema business on a slump sale basis.
PVR will fund the acquisition through part stock and part cash payout. PVR Ltd, will issue 25.57 lac shares to DT Cinemas representing 10% of the fully diluted paid up share capital of PVR Ltd and make a payment of Rs.20.2 crores to fund the above acquisition.
DT cinemas has a current portfolio of 29 screens with 26 screens currently operational and another 3 screens expected to commence operations in the next six months. All the acquired cinemas are on long term lease in various mall developments being owned/operated by DLF Group.
As part of the overall alliance, PVR shall be offered exclusive rights to operate as a key anchor multiplex partner in all future mall developments of the DLF Group. DLF has a huge portfolio of future mall developments planned in key markets at Delhi (Chanakaya Puri), Mumbai, Chennai, Hyderabad, Noida, Jallander, Lucknow etc. and this partnership should enable PVR to further expand its screen count by participating in all these developments.
While announcing the above transaction, Ajay Bijli, Chairman and Managing Director PVR Ltd said, “The acquisition of DT Cinemas and long term strategic partnership with the prestigious DLF Group is part of our expansion strategy and will further enhance PVR’s position as a leading multiplex operator in the country. PVR will now control 60%-70% of the market share in Delhi and Gurgaon market and will further strengthen PVR’s position as one of the largest multiplex player in India.”
He further added, “The industry is undergoing a paradigm shift. We foresee an opportunity for growth in the film and exhibition space and we want to be prepared to meet the challenges and provide innovative solutions in entertainment.”
The deal further re-affirms PVR’s strategy to rapidly grow in the film exhibition space and to become a dominant player across key markets.