Who: PVR Limited
What: Agreed to acquire DLF's DT Cinemas for 500 crore rupees
When: 9 June 2015
PVR Ltd, India’s largest multiplex chain, on 9 June 2015 agreed to acquire DLF's DT Cinemas for 500 crore rupees. The board of directors of the company at its meeting approved the acquisition of the cinema exhibition business of DLF Utilities ltd.
This deal is part of DLF's strategy to exit non-core businesses and cut huge debt of over 20000 crore rupees. On the other hand, it will help PVR Cinemas expand its presence in North India.
DT Cinemas is the wholly-owned subsidiary of realty giant DLF. It has 29 screens with a seating capacity of more than 6000, while PVR Cinemas has 467 screens in 105 properties in 43 cities.
Earlier in November 2009 DLF had signed an agreement with PVR to sell DT Cinemas, but deal fell through in February 2010. Shardul Amarchand Mangaldas & Co. was the legal adviser to PVR and EY India and Luthra & Luthra were financial and legal advisers respectively to DLF.
The acquisition of DT Cinemas by PVR is a continuation of acquisitions being seen in the entertainment industry. In December 2014, Carnival Group acquired Big Cinemas from Anil Ambani-led Reliance Group for an estimated 700 crore rupees, the biggest ever in this sector.
In July 2014, Inox Leisure acquired Gurgaon-based rival Satyam Cineplexes in a 182-crore rupees deal to strengthen its presence in North India.