PVR has agreed to acquire the cinema exhibition business of DLF Utilities, which operates under the DT Cinemas brand.It proposes to buy DT Cinemas on a slump sale basis – where the buyer does not assign a specific value to individual assets and liabilities – for Rs 500 crore.
Saurabh Chawla, Senior Executive Director, DLF Ltd, said: “The deal is in line with our strategy to focus on our core business and divest non-core businesses.”It is also reflective of the value embedded in our core assets and demonstrates our commitment to increase shareholder value. It shall provide the management a more focused approach for enhancing value, especially in our retail mall business.”
Currently, DT Cinemas operates Rs. 29 screens across eight properties in NCR and Chandigarh with plans to add 10 screens in the NCR.
This acquisition will increase PVR Cinemas’ screen-count to 506 screens across 115 multiplexes in 44 cities.
Ajay Bijli, Chairman and Managing Director, PVR, said: “We are committed to grow our film exhibition business both organically and inorganically.”
Shardul Amarchand Mangaldas & Co was the legal adviser to PVR, and EY India and Luthra & Luthra were financial and legal advisors, respectively, to DLF.
Shares of multiplex operator PVR Cinemas rallied 5.5 per cent, a day after it acquired real estate major DLF’s DT Cinemas for Rs. 500 crore.The stock jumped 5.53 per cent to 703.30 on the BSE. On the NSE, the scrip gained 5.14 per cent to 701.
PVR Cinemas had closed a deal acquiring DLF’s DT Cinemas for Rs. 500 crore, which marked yet another consolidation in the movie exhibition space in India.
The deal is PVR’s second major buyout after Cinemax deal for Rs. 395 crore in 2012.
Post-acquisition, multiplex operator will have presence in 44 cities with 115 multiplexes and 506 screens, it said in a statement.