PVR Ltd, India’s largest multiplex chain, has agreed to buy the cinema exhibition business of DLF Ltd, the country’s largest developer, for Rs 500 crore.
With this acquisition, PVR will get control of over a quarter of the multiplex screens in the country as exhibitors try to increase their bargaining power with film producers and distributors and capture a bigger share of box office receipts in India’s Rs 9,200-crore movie industry.
“The deal is in line with our strategy to focus on our core business and divest non-core businesses or assets,” Saurabh Chawla, senior executive director at DLF, said in a statement.
“It is also reflective of the value embedded in our core assets and demonstrates our commitment to increase shareholder value. It shall provide the management with a more focused approach for enhancing value, especially in our retail mall business.” he added.
“This acquisition is in pursuance of our core strategy to offer a world-class cinema experience to the discerning Indian consumer,” said Ajjay Bijli, chairman and managing director of PVR. The company had unsuccessfully bid for DT Cinemas in 2009.
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