Home >Companies >News >DLF exits cinema business in Rs64 crore deal

DLF Ltd, India’s largest real estate developer, has sold seven screens at two of its theatres to Cinepolis India for 63.7 crore, completing its exit from the movie exhibition business after PVR Ltd acquired a majority of its multiplexes.

The transaction, entered into by subsidiary DLF Utilities Ltd, includes six screens at its DT Saket multiplex and one at DT Savitri, a single-screen theatre at Greater Kailash-II in Delhi, DLF said in a filing to BSE on Friday.

In June 2015, PVR had agreed to buy the cinema exhibition business from DLF Utilities for 500 crore. However, PVR had to revise the terms of its deal after the Competition Commission of India (CCI), raised objections, citing PVR’s monopoly in certain areas in the northern region.

The value of the deal was lowered to 433 crore and PVR ended up buying 32 screens of DT Cinemas in the National Capital Region and Chandigarh. CCI cleared the deal in May.

Cinepolis India has 226 operational screens under the brand names of Cinepolis, Cinepolis VIP, Cinema Star and Fun Cinemas. It operates from five locations in New Delhi, with 17 screens. The additional screens will help it gain a presence in South Delhi where it doesn’t have a presence as of now.

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, four firms controlled 75% of the business.

In the last few years, DLF has exited several non-core businesses to reduce debt. It has shortlisted a few bidders for the sale of a stake in its commercial property arm DLF Cyber City Developers Ltd, Mint reported on 31 August.

The transaction is critical for DLF, which aims to raise 12,000 crore with the promoters selling a 40% stake in DLF Cyber City Developers to institutional investors. The proceeds will be used to reduce debt, which was to the tune of 22,120 crore as on 30 June.

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