Mumbai: Theatre chain PVR Ltd on Wednesday said the completion of its acquisition of DT Cinemas, a subsidiary of DLF, has been deferred till 15 February 2010, due to pending compliance issues.
In a letter to the Bombay Stock Exchange, PVR said the two parties have mutually agreed to extend the deadline for completing the deal until 15 February 2010.
As part of an acquisition deal signed in November last year, PVR was supposed to pay Rs20.20 crore and issue 25.57 lakhs shares on a preferential basis to DT Cinemas.
The issue of preferential shares was, however, subject to completion of certain pending compliances by DT Cinemas and the deal could be terminated if the acquisition conditions were not satisfied within 60 days of signing the agreement (on 13 November 2009) unless the period was mutually extended.
“We would like to inform you (BSE) that both the parties have mutually agreed to extend the Long Stop Date (date of completion of deal) until 15 February 2009,” PVR said in the letter.
PVR had announced it would buy the DLF group’s multiplexes for Rs60 crore by issuing 2.6 million of its shares, then valued at Rs40 crore at Rs165 per share and Rs20 crore in cash.
Reports, earlier this month, had suggested that the deal had hit a roadblock over differences between the two firms. However, both the companies had denied any problems and said the deal was on track.
PVR, in a disclosure to the stock exchanges on 1 January, had said preferential allotment of shares to DT Cinemas had been deferred for pending compliances with regards to handover of properties to the company.
The acquisition would help PVR enhance its presence in northern India, where DT Cinemas has 26 screens across six locations. As part of the deal PVR would also get exclusive access to multiplex chains in malls developed by the DLF group.
Currently, PVR has 108 screens in 26 multiplexes across the country and plans to increase it to 165 screens by the end of this fiscal.