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Inox acquires Satyam Cineplex for Rs 182 crore

With this acquisition, Inox's screen count in India now stands at 358 screens in 91 multiplexes across 50 cities

BS Reporter  |  Mumbai 

Inox

In line with its strategy to expand its footprint in India, multiplex chain Leisure Ltd (INOX) has bought 100 per cent share equity capital in New Delhi-headquartered Satyam Cineplexes Ltd (Satyam).

The deal is valued at Rs 182 crore. With this acquisition, Inox’s screen count in India has risen to 358, across 91 multiplexes and 50 cities. It is fast catching up with market leader PVR Cinemas, which has 400 screens across the country. The acquisition will give an entry into Delhi and strengthen the company’s position in north India.

Vivek Gupta, partner (mergers and acquisitions), BMR Advisors, says, “Satyam has three marquee properties in Delhi—Nehru Place, Janak Place and Patel Nagar. This gives a strong entry into the Delhi market; it was definitely one of the drivers for the deal.” Satyam Cineplexes has a total of 38 screens. The company also has multiplexes in Indore, Jodhpur, Aurangabad, Rohtak and Mysore and is setting up screens in Amritsar, Bhilwara and Bangalore.

This is Inox’s third acquisition since 2007, when it acquired Kolkata’s Calcutta Cine Private Ltd. In 2010, it bought out Fame India Ltd.

Deepak Asher, director, INOX Group of Companies, said, “Through the years, it has been our strategy to expand our multiplex business both organically and inorganically. With this acquisition, we will further strengthen our position in the sector, as well as in the country, especially north India. We look forward to take advantage of our vast reach across the length and breadth of the country and offer a one-stop platform to the complete value chain of film producers and distributors, right to the end consumer.”

“Through the next few months, INOX will evaluate the benefits of integration and consolidation to drive competitive advantage across the value chain and consider our strategic options, in accordance with regulatory guidelines.”


Alok Tandon, chief executive of INOX, said, “We are looking forward to making this integration work positively for our stakeholders, INOX and Satyam employees, as well as our guests. We look forward to a smooth merger of the best practices of both the We are excited and ready to bring in the best movie viewing experience to our guests at these multiplexes.”

Asher estimates the brand integration and upgrade of Satyam properties will be carried out within a year.

For the deal, Grant Thornton Advisory was the financial advisor, while Khaitan & Co was the legal advisor to INOX. For Satyam, BMR Advisors was the financial advisor, while Luthra & Luthra Law Offices was the legal advisor.

First Published: Thu, July 31 2014. 00:45 IST
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