PVR to amass 71.69% stake in SPI Cinemas for Rs 633 cr
New Delhi, Aug 12 () Multiplex chain PVR Ltd at present stated it’s buying 71.69 per cent stake in South India-based SPI Cinemas for about Rs 633 crore in an all money deal.
It stated that the corporate’s board has additionally permitted the issuance of 1.6 million shares of PVR for the residual stake.
PVR stated in a regulatory submitting that the board has permitted the execution of a Share Buy Settlement (SPA) on this regard.
The acquisition entails shopping for of SPI’s 61.65 per cent from SS Theatres LLP and 10.04 per cent fairness from S V Swaroop Reddy, it stated.
The proposed acquisition is in step with the PVR’s continuous development and enlargement technique, it stated.
“Such inorganic development will allow the corporate to develop its presence in South India and make a mark on the movie exhibition trade there.
“The acquisition of 71.69 per cent stake in SPI will probably be for a money consideration of about Rs 633 crore,” PVR stated.
The boards of each the businesses have permitted merger, it stated including, “1.6 million fairness shares of PVR to be issued for residual 28.three per cent stake”.
PVR CMD Ajay Bijli stated: “The acquisition of SPI Cinemas is of great strategic worth for PVR and can additional cement our market management place in India.
He stated the acquisition will make PVR the undisputed chief within the South Indian market & present a pretty platform “for us to develop in that geography, which presently is extremely underpenetrated by way of multiplexes… This transaction is a big step in serving to us obtain our imaginative and prescient of getting 1000 screens by 2020”.
Publish the transaction, PVR could have 706 screens operational throughout the nation and the corporate stated this acquisition will make it the #1 operator in prime three cities of South India — Chennai, Bangalore, and Hyderabad.
As per the phrases of the SPA, the acquisition must be accomplished inside 30 days from execution of the settlement and the merger into the PVR Ltd inside a interval of 18 months from the date of completion of the acquisition.
The Board has additionally permitted “provisions for customary name/put choices for acquisition of the remaining 28.31 per cent stake within the SPI from SS Theatres LLP, if triggered, for a consideration not exceeding RS 300 crore.”
SPI, which has a presence states like Tamil Andhra Pradesh, Nadu, Telangana, Karnataka and Kerala, has whole property of Rs 319.63 crore an turnover of Rs 308.60 crore as on March 31, 2018.
SPI Cinemas operates 76 screens throughout 17 properties in 10 cities beneath a number of manufacturers – Sathyam, Escape, Palazzo, The Cinema, S2 Cinema.
PVR stated it’s going to fund the transaction via a mixture of inside accruals, debt issuance and deferred fee of part of the consideration (Rs 100 crore) to be paid on achievement of sure milestones.
In 2016, PVR had acquired 32 screens of DT cinemas from realty main DLF for Rs 433 crore. PVR operates over 600 screens in 51 cities in India.
At current, PVR operates over 600 screens in 52 cities in India. SVK SA SA