PVR has decided to acquire DLF's DT Cinemas for Rs 500 crore. In an interview with CNBC-TV18, PVR CMD Ajay Bijli outlined details about the detail.
Below is the transcript of the interview on CNBC-TV18.
Q: The announcement coming in that you are going to buy DT Cinema for about Rs 500 crore. First thing I want to ask you is how confident are you that this time around the deal is going to go through. In 2010 we did see PVR walking away from the deal, what is different this time around?
A: We have not only shaken hands but we have also signed the deal and obviously both parties are committed to basically give that enhanced experience to the consumers and it is a complimentary fit because we have got some great malls and we want to add value to some great locations that they have got by enhancing the cinema experience further. So we are pretty committed from both sides.
Q: But again can you tell us what might be different this time around for 2010? I am sure even in 2010 you must have thought that you both complement each other. DLF still had those very malls and food courts.
A: I don’t know how to compare it to the deal that happened last time. A lot has happened in the last five years, we scaled up but DLF is a non core activity. At that time everybody was starting together and now they are focussing on what they are good at and we have to also do what we do best which is looking at great locations and building great cinemas and enhancing the brand value.
Q: Can you give us an idea by when this deal should be closed and how you are going to fund it?
A: Basically the board is meeting in a day or two, we will be shortly meeting and looking at possible funding options but it will be more equity and some debt. It is a large transaction and that announcement will be also made shortly.
Q: You have been making a lot of announcements of late. We even saw an announcement with another real estate company Vatika. If you can give us a little idea where your market share is currently and what it is likely to be post the DT acquisition?
A: No, we are not looking at market share at all because it is a growing market. Just now if you look at the macro picture India has hardly got any new multiplex screens and overall it is 1800 screens only overall in the country and about 7000 single screens. So, we are still pretty insignificant in terms of what the potential of the whole country is. So, we are not looking at that. We are all about getting right locations. Even that Vatika deal is ready, they are building some malls and we will get some locations in that. So, it is about tapping that discerning consumer in every catchment who has an appetite to watch moves.
Q: PVR and Dabur also had a joint venture one time to run food courts, DLF has food courts. Is food courts at all part of this transaction? Going forward are you going to rebrand DT Cinema as PVR and what about all the new malls that DLF is building, are they going to have PVR screens?
A: Basically no food courts at all. It is only cinema and yes, the DT Cinema will be rebranded as PVR cinema and all the future malls which are coming up of DLF also PVR will house our multiplexes in that.
Q: So you have a right of first refusal, is that how it is going to work?
A: That is right.
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