PVR To Acquire SPI Cinemas

PVR Ltd. will buy south India’s largest cinema chain and the whole transaction is valued for ₹850 crore. This would strengthen the base of PVR in Tamilnadu.

According to the reports, PVR would buy 2,22,7711 equity shares or 71.7% stake in SPI Cinemas from existing shareholders for a total consideration of ₹633 crore. This involves buying 1,91,534 equity shares or 61.65% stake of SPI from SS Theatres LLP and 31,177 equity shares, or 10.04% stake, in SPI from S.V. Swaroop Reddy, respectively.

Also, PVR would issue 1.6 million shares or 3.3% shares in PVR as part of the transaction. Based on PVR Ltd.’s closing share price of ₹1,317.20 on Friday, the 3.3% stake amounts to ₹210.75 crore. Overall, the cash and stock transaction is valued at ₹843.75 crore. PVR currently operates a cinema circuit comprising 638 screens at 137 properties in 54 cities (19 States and UTs), serving 76 million patrons annually.

The deal would probably be done in the other 30 days. “The acquisition of SPI Cinemas is of significant strategic value for PVR and will further cement our market leadership position in India”, said Ajay Bijli, chairman cum managing director, PVR.

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