Multiplex chain PVR to acquire South India-based SPI Cinemas for Rs 8.5 bn

The acquisition will also propel PVR to becoming the 7th largest cinema exhibitor in the world in terms of annual admissions at its theatres

Multiplex chain PVR Ltd on Sunday announced the acquisition of South India-based SPI Cinemas Private Ltd, which has a presence in the key markets of Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Kerala, and Mumbai.

In a cash-cum-stock deal, PVR will acquire 222,711 equity shares of SPI Cinemas, constituting 71.7 per cent of SPI, from existing shareholders for a total consideration of Rs 6.33 billion, and issue 1.6 million equity shares of PVR Limited, constituting 3.3 per cent of the diluted paid up equity share capital of PVR. At Rs 1,317.2 per share, this translates to Rs 2.1 billion, taking the deal value to just short of Rs 8.5 billion. EY India was the exclusive financial advisor on the transaction.

PVR will be funding the cash transaction through a combination of internal accruals, new debt issuance, and a deferred consideration of Rs 1 billion, which will payable on the achievement of certain milestones. Both of SPI's key executives, Kiran M Reddy and Swaroop Reddy, will continue to remain associated with the business.

Read More On → PVR SPI Cinemas Deal

 

PVR partners Rajinikanth's Kabali, first multiplex to tap regional film

PVR partners Rajinikanth's Kabali, first multiplex to tap regional film

Pan-India multiplex chain PVR has joined the bevy of brands, companies associating with south Indian superstar Rajnikanth’s latest movie ‘Kabali’. The cinema exhibition chain is the official multiplex partner for the film set to release on July 22 acorss the country.

This is the first time in the South Indian film industry, that such an association between an exhibition chain and a film has been made.

Gautam Dutta, CEO, PVR Cinemas said, “The producers of the movie had approached PVR due to its pan India reach much beyond Tamil Nadu considering the mega star Rajinikanthhas die-hard fans across the country to introduce exclusive Kabali merchandise at its cinemas.

The patrons will not only have access to special Kabali merchandise at PVR cinemas but can also buy exclusive movie digital poster from its website.” (more)