The Hindu Business Line : PVR acquires DLF’s DT Cinemas

As part of the overall alliance, PVR shall be offered exclusive rights to operate as a key anchor multiplex partner in all future mall developments of the DLF Group.

Commenting on the acquisition, Mr Ajay Bijli, Chairman and Managing Director PVR Ltd, said, “The acquisition of DT Cinemas and long-term strategic partnership with the DLF Group is part of our expansion strategy.

PVR will now control 60-70 per cent of the market share in Delhi and Gurgaon market.”

DLF has planned mall development in the key markets of Delhi, Mumbai, Chennai, Hyderabad, Noida, Jallandhar and Lucknow.

The partnership with DLF should enable PVR further expand its screen count by participating in all these developments.

PVR Ltd also announced on Friday that the company will be offering 10 per cent of its equity capital to Thailand-based Major Cineplex Group Plc. According to the arrangement, Major Cineplex Group Plc will invest about Rs 42 crore into PVR Ltd by subscribing to 25.57 lakh new shares. The investment from Major Cineplex Group would happen at Rs 165 a share and a premium of 19 per cent over the closing stock price of PVR of Rs 139 on the NSE on Thursday.

Strategic investment

Mr Bijli said, “This strategic investment by Major Cineplex Group would help us to leverage Major’s expertise in international market. We foresee a tremendous value add in the cinema space and other retail entertainment formats, which will help us broad-base the entertainment options that are currently being offered to our Indian customers. This move is both imperative and rudimentary to help transform PVR into an integrated retail entertainment company over the next few years.”

Major Cineplex Group Plc is a lifestyle entertainment company listed on the stock exchange of Thailand. It operates about 350 multiplex screens, 500 bowling lanes, 300 karaoke rooms and two ice skating rinks. In 2008, the company had a turnover of approximately Rs 805 crore with a net profit of Rs 90.70 crore.

More Stories on : Cinema | Mergers & Acquisitions | Retailing | DLF Ltd

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