By IANS,
New Delhi : Multiplex chain PVR Ltd Friday said it has acquired the cinema business of DT Cinemas, a subsidiary of DLF Group, in a cash-cum-stock deal.
According to the deal, PVR will issue 25.57 lakh shares to DT Cinemas representing 10 percent of the fully diluted paid-up share capital of PVR and make a payment of Rs.20.2 crore, the company said in a statement.
DT cinemas has a current portfolio of 29 screens with 26 currently operational and the other three expected to commence operations in six months.
All the acquired cinemas are on long-term lease in various malls owned by the DLF group.
The multiplex chain has also entered into a long-term strategic partnership with the DLF group.
PVR will be offered exclusive rights to operate as a key anchor multiplex partner in all future mall developments of the DLF Group.
“The acquisition of DT Cinemas and long-term strategic partnership with the DLF group is part of our expansion strategy and will further enhance our position as a leading multiplex operator in the country,” said Ajay Bijli, chairman and managing director of PVR.
With the agreement, PVR will now control 60-70 percent of the market share in Delhi and Gurgaon, he added.
“We foresee an opportunity for growth in the film and exhibition space and we want to be prepared to meet the challenges and provide innovative solutions in entertainment.”