PVR postpones acquisition of DLF’s theatre chain business

MUMBAI: Multiplex chain PVR has postponed its decision to acquire DLF Group’s DT Cinemas chain till 15 February, 2010 due to pending compliance issues.

The two companies have mutually agreed to extend the deadline for completing the deal until 15 February.

As part of an acquisition deal signed in November last year, PVR was to acquire DLF Group’s cinema business in a stock-and-cash deal. A payment of Rs 202 million (Rs 20.20 crore) was to be made along with the issuance of 2.56 million shares to DT Cinemas representing 10 per cent of the fully diluted paid up share capital of PVR Ltd on a preferential basis for the acquisition.

In an official statement, PVR said that the issue of preferential shares was subject to completion of certain pending compliances by DT Cinemas and the deal could be terminated if the acquisition conditions were not satisfied within 60 days of signing the agreement unless the period was mutually extended by the parties to the acquisition agreement.