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CCI approves Big Cinemas takeover by Carnival Films

In December, Carnival Films Pvt Ltd signed a deal to acquire a 100% stake in multiplex operator Big Cinemas

Reghu Balakrishnan  |  Mumbai 

Fair trade regulator the Competition Commission of India (CCI) has approved Reliance MediaWork's sale of to

In December, Pvt. Ltd, backed by Kochi-based investor Shrikant Bhasi, signed a deal to acquire a 100% stake in multiplex operator Big Cinemas, an arm of the Anil Ambani-owned (RMW), for about Rs 700 crore. owned 252 screens.

The CCI is learnt to have mentioned the deal does not raise anti-competitive concerns.

ALSO READ: Carnival Cinemas acquires Reliance MediaWorks' exhibition business

The transaction, structured as a combination of transfer of debt of RMW and infusion of cash proceeds, will reduce Reliance Capital’s leverage by approximately Rs 700 crore.

The deal excluded real estate property owned by RMW at IMAX Wadala and other properties, which will be be separately monetised for an approximate value of Rs 200 crore.

As per the agreement, Reliance Capital will have the option to acquire a pre-IPO (initial public offering) minority stake in Carnival Cinemas at an appropriate discount, upon eventual listing of the company.

In January, Carnival also had acquired from Network18 Media, increasing Carnival's total number of screens at 330, close to the 361 screens of Stargaze operates multiplexes in various cities under the brand name

The Group remains at top position as India's largest multiplex chain with 454 screens.

First Published: Tue, March 31 2015. 18:13 IST