PVR is looking to enhance its presence in markets that SPI operates in including Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Kerala and Mumbai.
Multiplex chain PVR announced on August 12 that it is acquiring SPI Cinemas, one of the largest cinema exhibition players in South India. SPI has a network of 76 screens across 17 properties and 10 cities.
PVR is looking to enhance its presence in markets that SPI operates in including Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Kerbuinala and Mumbai.
With the acquisition, PVR’s total screen count will increase to 706 screens across 152 properties and 60 cities. The acquisition will propel PVR as the seventh largest cinema exhibitor in the world in terms of annual admissions at theatres, which would be in excess of 100 million.
In a statement, PVR said that under the terms of the proposed acquisition, PVR would acquire 222,711 equity shares of SPI Cinemas constituting 71.7 per cent of the paid up equity share capital of SPI from existing shareholders for a total consideration of Rs 633 crores and issue 1.6 million equity shares of PVR Limited constituting 3.3 per cent of the diluted paid up equity share capital of the company pursuant to a scheme of amalgamation between SPI and PVR.
The transaction is expected to be closed in next 30 days and the merger process is expected to be completed in the next 9-12 months.“The acquisition of SPI Cinemas is of significant strategic value for PVR and will further cement our market leadership position in India. The acquisition will make PVR the undisputed leader in the South Indian market and provide an attractive platform for us to expand in that geography, which currently is highly underpenetrated in terms of multiplexes. This transaction is a significant step in helping us achieve our vision of having 1000 screens by 2020," said Ajay Bijli, chairman and managing director, PVR Ltd.