Multiplex chain PVR Ltd said it is acquiring 71.69 per cent stake in South India-based SPI Cinemas, owners of Sathyam Cinemas—one of the largest exhibitors in South India, for about Rs 633 crore in all cash deal.
It said PVR's board has also approved the issuance of 1.6 million shares of PVR for the residual stake. The total deal is estimated to be worth Rs 850 crore.
PVR said in a regulatory filing that the board has approved the execution of a Share Purchase Agreement (SPA) in this regard.
SPI Cinemas has presence in states like Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Kerala. With the acquisition, PVR will strengthen its foothold in top 3 cities of South India—Chennai, Bengaluru, and Hyderabad.
Following are the numbers involved in the process of acquisition:
- Total acquisition: 71.69 per cent
- PVR will buy SPI's 61.65 per cent from SS Theatres LLP and 10.04 per cent equity from S.V. Swaroop Reddy for the acquisition.
- 1.6 million equity shares of PVR will be issued for residual 28.3 per cent stake in SPI Cinemas.
- Post the transaction, PVR will have 706 screens operational across India.
- SPI's total assets was worth Rs 319.63 crore with a turnover of Rs 308.60 crore, as on March 31, 2018.
- SPI Cinemas operates 76 screens across 17 properties in 10 cities under several brands Sathyam, Escape, Palazzo, The Cinema, S2 Cinema.
- Currently, PVR operates around 600 screens in 52 cities in India.