India’s largest multiplex chain announced its acquisition of SPI Cinemas Private Ltd, one of the largest cinema exhibition player in South India. SPI Cinemas has key markets in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Kerala, and Mumbai. The acquisition is said to propel PVR Limited as the 7th largest cinema exhibitor in the world in terms of annual admissions at its theatres.
PVR press release said that the company would acquire 222,711 equity shares of SPI Cinemas constituting 71.7 % of the paid up equity share capital of SPI from existing shareholders for a total consideration of INR 633 crores and issue 1.6 mn equity shares of PVR Limited constituting 3.3% 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 next 9-12 months.
Commenting on the transaction Mr. Ajay Bijli, Chairman cum Managing Director, PVR Ltd said “The acquisition of SPI Cinemas is of significant strategic value for PVR and will further cement our market leadership position in India. This transaction is a significant step in helping us achieve our vision of having 1000 screens by 2020.”
Commenting on the transaction Mr. Kiran Reddy of SPI Cinemas said, “SPI Cinemas has been revolutionizing the movie watching experience for its patrons by consistently bringing in world-class technology and innovative offerings. We are excited to now partner with the largest Indian multiplex chain PVR as this combines two proven business models and will create significant value for moviegoers as well as all the stakeholders”.
SPI Cinemas officially released a press note confirming the acquisition on Tuesday.