|
Mumbai: After several months of speculation, real estate developer DLF Group’s DT Cinemas has finally inked an agreement with Priya Village Roadshow (PVR), one of India’s multiplex chains. The pact allows PVR to acquire DT’s cinema business on a slump sale basis. The deal highlights the growing potential of the Indian entertainment industry, where a new string of multiplexes is transforming movie buffs’ experience, even in smaller towns.
As per the agreement, PVR will fund the acquisition through a part-stock and part-cash payout. PVR will issue 25.57 lakh shares to DT Cinemas, representing 10% of the fully diluted paid-up share capital of PVR. The multiplex chain will also make a payment of Rs 20.2 crore to fund the acquisition. All the acquired cinemas are on long-term lease in various malls being developed by DLF Group.
Ajay Bijli, chairman & MD, PVR, said: “The acquisition of DT Cinemas and the long-term strategic partnership with the DLF Group is part of our expansion plan. PVR will now control 60-70% of the market share in Delhi and Gurgaon. We will further strengthen PVR’s position as one of the largest multiplex players in India.”
As part of the alliance, PVR will be offered exclusive rights to operate as a key anchor multiplex partner in all future mall developments of DLF. DLF has a huge portfolio of such projects planned in key markets in Delhi (Chanakaya Puri), Mumbai, Chennai, Hyderabad, Noida, Jallander, Lucknow and other cities.
Bijli said, “The industry is undergoing a paradigm shift. We foresee an opportunity for growth in the film and exhibition space and want to be prepared to meet the challenges and provide innovative solutions in entertainment.”
According to experts, this partnership will enable PVR to further expand its screen count.
DT Cinemas, at present, has a portfolio of 29 screens. While 26 screens are currently operational, the company will bring in another three screens in the next six months.
PVR on Friday said that it is offering 10% of its equity capital to Cineplex Group, one of Thailand’s entertainment groups. Under the arrangement, Cineplex would be investing around Rs 42 crore into PVR by subscribing to 25.57 lakh of new shares. The investment by Cineplex would happen at a price of Rs 165 per share, a premium of 19% over the closing price of PVR on the National Stock Exchange on Thursday.
More from Back Page
Discuss this story on expressindia forums
|
|
 |
 |
 |
About Us | Contact Us | Advertisers | Site Map | Make us your homepage | Work for Us | RSS | Subscribe | Electronic Edition | Privacy Policy© 2009: The Indian Express Limited. All rights reserved throughout the world
