In yet another consolidation in the multiplex business, PVR Ltd Tuesday acquired DLF’s ‘DT Cinemas’ for Rs 500 crore on a slump sale basis.
“The Board of Directors of the company at its meeting held on June 9, 2015, has approved acquisition of the cinema exhibition business of DLF Utilities Ltd,” PVR said in a filing to BSE.
It further said: “PVR Ltd executed definitive agreements with DLF Utilities Ltd to acquire its cinema exhibition business, which is operated under the brand name of ‘DT Cinemas’, on slump sale basis for an aggregate consideration of Rs 500 crore approx.”
DT Cinemas, the wholly-owned subsidiary of realty giant DLF, has 29 screens with a seating capacity of more than 6,000, while PVR Cinemas has 467 screens in 105 properties in 43 cities.
“As a result of the proposed acquisition, PVR will have a presence in 44 cities with 115 multiplexes and 506 screens,” PVR said.
In November 2009 as well, DLF had signed an agreement with PVR to sell DT Cinemas, but deal fell through in February 2010.
“It has been our strategy to expand our film exhibition business both organically and inorganically over the years. This acquisition is in pursuance of our core strategy to offer a world class cinema experience to the discerning Indian consumer,” Ajay Bijli, Chairman cum Managing Director, PVR Ltd said.