New Delhi: The Rs350 crore film exhibition firm PVR Ltd, which operates 108 movie screens, on Friday reached an agreement with the DLF group to buy the latter’s DT Cinemas business through a part-stock and part-cash deal.
Grabbing screen: PVR chairman and MD. Ajay Bijli. Madhu Kapparath/Mint
DT Cinemas operates 26 screens. As part of the deal, DLF group has agreed to offer exclusive rights to PVR to be the anchor cinema hall partner in its future mall projects. Ajay Bijli-promoted PVR would also issue about 2.5 million shares to DT Cinemas, representing 10% of its share capital, and pay Rs20.2 crore to fund the acquisition of DLF group’s exhibitions business.
The company also announced that Thailand’s retail entertainment and multiplex firm Major Cineplex Group Plc will buy a 10% stake in PVR. The Thai firm would be investing about Rs42 crore in PVR by subscribing to some 2.5 million new shares for Rs165 apiece, a premium of 19% over the closing stock price of PVR of Rs139 on the National Stock Exchange on Thursday. The scrip closed at Rs140.25 on Friday.
Major Cineplex is listed on Thailand Stock Exchange and operates some 350 screens, 500 bowling lanes, 300 karaoke rooms and two ice-skating rinks.
“We have been working with Major Cineplex for a year now but the strategic investment will help us to leverage Major’s learnings and expertise in international market,” said Bijli, PVR’s chairman and managing director.