Multiplex chain PVR to acquire South India-based SPI Cinemas for Rs 8.5 bn The acquisition will also propel PVR to becoming the 7th largest cinema exhibitor in the world in terms of annual admissions at its theatres
Multiplex chain PVR Ltd on Sunday announced the acquisition of South India-based SPI Cinemas Private Ltd, which has a presence in the key markets of Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Kerala, and Mumbai. In a cash-cum-stock deal, PVR will acquire 222,711 equity shares of SPI Cinemas, constituting 71.7 per cent of SPI, from existing shareholders for a total consideration of Rs 6.33 billion, and issue 1.6 million equity shares of PVR Limited, constituting 3.3 per cent of the diluted paid up equity share capital of PVR. At Rs 1,317.2 per share, this translates to Rs 2.1 billion, taking the deal value to just short of Rs 8.5 billion. EY India was the exclusive financial advisor on the transaction. PVR will be funding the cash transaction through a combination of internal accruals, new debt issuance, and a deferred consideration of Rs 1 billion, which will payable on the achievement of certain milestones. Both of SPI's key executives, Kiran M Reddy and Swaroop Reddy, will continue to remain associated with the business.
Read More On →PVR SPI Cinemas Deal