PVR acquires DT Cinemas; raise Rs 422 million via Major Cineplex

MUMBAI: Multiplex chain PVR has acquired DLF Group’s theater chain DT Cinemas for Rs 200.2 million in cash and by issuing 2.56 million shares to DLF.

Additionally PVR has also offered 10 per cent of its equity capital to Major Cineplex Group, one of Thailand’s largest entertainment group. With this, Major Cineplex Group Plc. would be investing Rs 421.9 million (Rs 42.19 crore) into PVR Limited by subscribing to 25.57 lakh of new shares. Major Cineplex Group currently operates about 350 multiplex screens, 500 bowling lanes, 300 karaoke rooms and two ice skating rinks.

DT Cinemas operates 29 screens, of which 26 screens are operational. An additional three screens are expected to commence operations over the next six months. DT Cinemas is currently present in Delhi, Gurgaon and Chandigarh with seating capacity of more than 5300 seats.

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

PVR chairman and managing director Ajay Bijli said, "The acquisition of DT Cinemas and long term strategic partnership with the prestigious DLF Group is part of our expansion strategy and will further enhance PVR’s position as a leading multiplex operator in the country. PVR will now control 60-70 per cent of the market share in Delhi and Gurgaon market and will further strengthen PVR’s position as one of the largest multiplex player in India."

"The industry is undergoing a paradigm shift. We foresee an opportunity for growth in the film and exhibition space and we want to be prepared to meet the challenges and provide innovative solutions in entertainment," he added.

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