PVR Looks To Expand Its Presence In South India
The country’s largest movie exhibitor PVR Ltd. has announced a plan to acquire south India-based multiplex chain SPI Cinemas Private Ltd. for Rs 633 crore, the company said in a press release.
PVR will acquire 222,711 equity shares or 71.7 percent equity in SPI Cinemas which has presence in Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Kerala and Mumbai.
SPI Cinemas has a network of 76 screens (68 operational and 8 expected to commence operations soon) across 10 cities. Following SPI Cinema's acquisition, PVR’s total screen count will increase to 706 across 60 cities.
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 & provide an attractive platform for us to expand in that geography, Ajay Bijli, Chairman cum Managing Director, PVR said in the press release.
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.