Real estate firm DLF is poised to get out of its movie hall business by becoming a passive junior partner to multiplex operator PVR in a venture that will run 26 screens owned by DLF-controlled DT Cinemas.
DLF will retain a 14.99 per cent stake in a likely special purpose vehicle to run the cinemas while being the owner of the properties that house the movie screens, reliable sources told Hindustan Times.
If the no-cash deal goes through, DLF will pool in the real estate while PVR will run the the day-to-day operations. DLF will get a 14.99 per cent of the combined revenues of the 134 screens.
A DLF spokesperson declined comment, while a senior PVR official who wished to remain anonymous said that the likelihood of the deal was a “rumour.” The company was evaluating “multiple options of inorganic growth” to consolidate its position in the entertainment market, he added. Ajay Bijli owned PVR runs 108 screens across the country. The existing DT Cinemas screens are located across Delhi, Gurgaon and Chandigarh and have a combined seating capacity of more than 5,300.Selling out the screens to PVR will result in saving operational expenses like staff cost for DLF.
DLF has been focusing more on the property business, and scaling down its ambitions in other areas.