In a cash-cum-equity swap transaction, Multiplex chain PVR has acquired real estate company DLF’s cinema business — DT Cinemas — for Rs 60 crore. This includes Rs 20.2 crore in cash and 25.6 lakh shares (10% of the diluted equity base) worth Rs 40 crore. Simultaneously, PVR issued 10% fresh shares on preferential basis to Thailand-based company Major Cineplex for an estimated Rs 42 crore for 25.6 lakh of new shares.
Since PVR’s equity base is expanding by little over 18% as result of these two transactions, the promoters’ stake in PVR will be diluted to 34% from the current level of 41.24%. On a fully consolidated basis, both DLF Group and Major Cineplex will own about 9.1% stake each.
PVR will now control 60-70% of the market share in
DT Cinemas owns and runs 26 screens and will add three more screens in the next six months. All the acquired cinemas are on long-term lease in various malls owned or operated by the DLF Group. In addition, PVR will be offered exclusive rights to operate as a key anchor multiplex partner in all future mall development planned in cities like
PVR currently operates 26 cinemas with a total of 108 screens spread over 14 key cities in
Company Name | CMP |
---|---|
PVR | 1381.80 |
Saregama India | 497.65 |
Eros Internatl.Media | 15.13 |
Shemaroo Entertain. | 160.10 |
Balaji Telefilms | 79.92 |
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