Inox buys Kolkata cinema house

Multiplex major Inox Leisure has acquired the Calcutta Cinema Private-owned 89 Cinemas, in an all-share swap deal. The merger of CCPL is likely to result in a less than 5 per cent dilution of Inox promoters' stake.

Deepak Asher, director, Inox Leisure said as per the contours of the arrangement, CCPL would cease to exist and owners of CCPL would be issued shares in Inox Lesiure.

"Given that the Inox is a national chain and 89 Cinemas regional, the dilution of Inox promoters' stake would be less than 5 per cent," he said.

At present, promoters hold around 66 per cent in Inox Leisure Ltd. CCPL operates a four-screen multiplex at Swabhumi in Kolkata and is likely to commence its second three-screen multiplex at Durgapur in West Bengal in around a fortnight.

CCPL has tied up properties for building and operating six other multiplexes in West Bengal and Assam.

CCPL also has an understanding with Bengal Ambuja Housing Development Limited (Bengal Ambuja) - a leading real estate developer in Kolkata - which gives CCPL preferential access as the preferred multiplex operator to all properties being developed by Bengal Ambuja.