PVR has entered into definitive agreements to acquire the cinema exhibition business of DLF Utilities Ltd, which is operated under the brand name DT Cinemas for Rs 500 crore.
Sold to PVR on a slump sale basis, DT Cinemas operates 29 screens with approximately 6,000 seats across eight properties in the National Capital Region (NCR) and Chandigarh. Over the next 12 months, DT Cinemas has plans to add 10 new screens at two properties in NCR.
Currently, PVR has 467 screens across 105 locations in 43 cities. As a result of the proposed acquisition, PVR’s presence will span across 44 cities with 506 screens and 115 multiplexes.
The proposed transaction will be subject to approval of applicable statutory and regulatory approvals and satisfaction of customary conditions precedent.
PVR chairman cum managing director Ajay Bijli said, “It has been our strategy to expand our film exhibition business both organically and inorganically over the years. This acquisition is in pursuance of our core strategy to offer a world class cinema experience to the discerning Indian consumer.”
DLF Rental Business CEO Sriram Khattar added, “We are pleased to sell DT Cinemas to PVR, which is a high quality provider of cinema experience. Combining our unrelenting focus on providing a ·wholesome experience at our malls with PVR 's deep knowledge of the cinema business, we look forward to continue enhancing our best in class offerings for the customers.”
Shardul Amarchand Mangaldas & Co was the legal advisor to PVR and EY India and Luthra & Luthra were financial and legal advisors respectively to DLF.