PVR ropes in Thailand’s MCG, buys DT Cinemas
Multiplex major PVR Ltd on Friday announced that it would acquire DLF Group’s theatre arm DT Cinemas in a cash-cum-stock deal.business Updated: Nov 13, 2009 21:25 IST
Multiplex major PVR Ltd on Friday announced that it would acquire DLF Group’s theatre arm DT Cinemas in a cash-cum-stock deal.
In a separate transaction, PVR offered 10 per cent preferential shares to Thailand’s entertainment company Major Cineplex Group (MCG) for a consideration of Rs 42.19 crore.
The shares would be issued to Major Cineplex at a price of Rs 165 per share — a premium of 19 per cent over Friday’s close price of Rs 139.
In the first transaction, PVR acquired DT Cinemas by paying Rs 20.02 crore in cash, while offering 10 per cent preferential shares to the DLF group company.
The promoters’ holding in PVR Ltd would remain unchanged at 41 per cent even after the two transactions as fresh equity will be issued.
The acquisition of DT cinemas has been carried out on a slump sale basis, wherein assets are acquired on a lump sum consideration without assigning values to individual assets.
DT Cinemas currently has eight film theatres and operates 26 screens and expects to add another three screens in the next six months, which would take the total screens under its kitty to 29.
The company has four theatres in Delhi, three at Gurgaon, and one at Chandigarh.
“The acquisition of DT Cinemas is part of our expansion strategy. PVR will now control 60-70 per cent of the market share in Delhi and Gurgaon,” Ajay Bijli, chairman and managing director PVR Ltd said.
“The partnership with PVR allows us to focus on our core business of real estate while ensuring the highest quality of entertainment being offered to the retail customers is commensurate with DLF’s standards,” Pia Singh, chairperson DLF
Retail Developers Ltd said.