India’s PVR Cinemas has reached an agreement to acquire DLF Group’s DT Cinemas, and also offered 10% of its equity to Thailand’s Major Cineplex Group, which will invest about $9m in the company.
Continuing on its aggressive expansion drive, PVR will fund the DT Cinemas acquisition through a cash and stock deal worth $13.5m. DT Cinemas has a current portfolio of 29 screens – 26 screens are operational and another three are expected to open in the next six months. All the acquired cinemas are on long-term lease in various mall developments owned or operated by DLF Group.
As part of the alliance, PVR will also be offered exclusive rights to operate as a key anchor multiplex partner in all future mall developments of the DLF Group.
“PVR will now control 60-70% of the market share in the Delhi and Gurgaon market and will further strengthen its position as one of the largest multiplex players inIndia,” said PVR chairman Ajay Bijli.
PVR already has a joint venture with Thailand’s Major Cineplex to open bowling alleys and ice-skating rinks. The first PVR Blu-O opened this summer next to a PVR multiplex near Delhi in Gurgaon.
Bijli added: “While we have enjoyed a great business relationship with Major Cineplex Group over the last one year in our bowling venture, both the parties were keen to strengthen the relationship further. This strategic investment by Major Cineplex Group would help us to leverage Major’s learning and expertise in the international market.”
PVR currently operates 108 multiplex screens across India and intends to add another 100 screens over the next 18 months. The investment from the Major Cineplex will be used by the company to fund its long-term expansion plans.