Multiplex chain PVR Ltd is buying realty major DLF Ltd’s cinema chain DT Cinemas, which currently runs 26 screens in Delhi, Gurgaon and Chandigarh. PVR will also get exclusive rights to be the key multiplex partner in all future developments by DLF.
DT Cinemas will get Rs20.2 crore in cash and 2.5 million equity shares as part of the deal, representing a total deal value of about Rs50 crore (2.5 million shares represents a 10.86% stakeholding as the total number of shares is 23.01 million). PVR currently has a market cap of Rs321.73 crore.
The deal gives PVR a 20% share of the country’s exhibition market and 60-70% share in the Gurgaon-Delhi region, Business Standard estimated.
In a separate deal, PVR is selling a 10% stake to Thailand’s Major Cineplex Group Plc. The Thai firm, a joint venture partner of PVR in the indoor entertainment business (bowling, skate rinks), will buy 2.5 million shares for a total consideration of Rs42.19 crore.