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| PVR to acquire DLF's DT Cinemas |
| BS Reporter / Mumbai Nov 13, 2009, 17:28 IST |
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Leading theatre chain PVR Cinemas has announced its 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 will issue 25.57 lakh shares to DT Cinemas representing 10 per cent of the fully diluted paid up share capital and make a payment of Rs 20.2 crore to fund the 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 and 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 as a string of future mall developments planned in key markets at Delhi (Chanakaya Puri), Mumbai, Chennai, Hyderabad, Noida, Jallander, Lucknow among other cities. This partnership will enable PVR to further expand its screen count through these projects.
Ajay Bijli, chairman and managing director PVR 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 per cent of the marketshare in Delhi and Gurgaon market and will further strengthen PVR’s position as one of the largest multiplex player in India.”
He added that with the industry undergoing a paradigm shift, PVR foresees an opportunity for growth in the film and exhibition space and wants to be prepared to meet the challenges and provide innovative solutions in entertainment.
PVR currently runs 26 cinemas with around 108 screens across 14 cities. DLF when entered the multiplex business in 2003 by launching 3 screens in Gurgaon now runs 8 theatres of which 6 are operational and 2 will commence operations in the next 6 months. The theatres are located in Gurgaon (3), Delhi (4), Chandigarh (1) with 29 screens.
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