Acquisition of SPI Cinemas by PVR
Posted on: 13/Aug/2018 12:22:01 PM
On a transaction valued at Rs 850 Crore PVR Limited will acquire SPI cinemas, South India’s largest cinema chain. The deal will enhance the value of PVR in the stock market aiming for a strong foundation in Tamil Nadu.
PVR plans to buy 2,22,7711 equity shares or 71.7% stake of SPI cinemas from the existing shareholders. The trade involves buying 1,91,534 equity shares or 61.65% stake of SPI from SS Theatres LLP and through S.V. Swaroop Reddy buying 31,177 equity shares, or 10.04% stake. The transaction based out on cash and stock calculations comes to the total of ₹843.75 crore.
PVR Cinemas operates in 54 cities of India across 137 properties with 638 screens and the acquisition of SPI can increase the count to 706 screen across 152 properties.
The deal can escalate PVR’s status as the seventh largest cinema exhibitor in the world based on annual admission rates that exceeds 100 million. Ajay Bijli, Chairman and Managing director of PVR Ltd informed that the company’s acquisition of SPI is one of the key steps for achieving the goal of 1000 screens by 2020.
