BackPVR revises deal terms for DLF’s DT Cinemas, excludes 7 screens
The deal was reworked after the Competition Commission of India passed an order, citing PVR's monopoly in certain areas in the northern region
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Mumbai: Multiplex owner PVR Ltd has revised the terms of its deal with a unit of DLF Ltd to buy the DT Cinemas chain after India’s competition watchdog raised objections, the company said in a notification to the stock exchange.
The value of the deal with DLF Utilities Ltd has been lowered to ₹ 433 crore from the original ₹ 500 crore. The amended agreement excludes DT Savitri (one screen) and DT Saket (six screens) from the sale. PVR now proposes to acquire 32 screens of DT Cinemas in National Capital Region and Chanḍigaṛh.
The Competition Commission of India had cited PVR’s monopoly in certain areas in the northern region in its objections to the deal.
On 3 December 2015, Mint had reported that PVR may have to sell some of its screens in Delhi to get clearance for its ₹ 500 crore acquisition of DT Cinemas. The transaction was announced in June last year.
The acquisition was aimed to help PVR expand its footprint in north India and help DLF bring down its debt burden. PVR has 516 screens across 43 cities.
“As a result of the proposed acquisition, PVR will have a presence in 44 cities with 115 multiplexes and 506 screens," PVR wrote to stock exchanges in June last year.
The Indian movie exhibition market is currently dominated by four companies. PVR owns the maximum number of screens at 516, followed by Inox Leisure Ltd (420) and Carnival Cinemas (341).
According to an April 2015 research report by brokerage IIFL Holdings Ltd, in 2005, six firms held 41% market share of the business. By 2015, four firms controlled 75%.
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