PVR Limited, India's biggest multiplex chain, on Tuesday announced the acquisition of DLF's multiplex subsidiary DT Cinemas for Rs 500 crore.
DT Cinemas currently operates 29 screens with approximately 6,000 seats across 8 properties in the National Capital Region and Chandigarh. PVR has 467 screens across 105 locations in 43 cities.
"As a result of the proposed acquisition, PVR will have a presence in 44 cities with 115 multiplexes and 506 screens," PVR said in a statement to the BSE.
PVR had earlier bid for DT Cinemas in 2009, but the deal could not fructify. This DT Cinemas deal is part of DLF's strategy to exit non-core businesses and cut huge debt of over Rs 20,000 crore.
Commenting on the deal, DLF Senior Executive Director Saurabh Chawla said: "The deal is in line with our strategy to focus on our core business and divest non-core businesses or assets...It shall provide the management a more focused approach for enhancing value especially in our retail mall business."
The multiplex space has been in consolidation phase in the last one year. In January this year, Mexican multiplex chain operator Cinepolis fully acquired Essel Group's Fun Cinemas for an undisclosed sum.
In December 2014, Carnival Group acquired Big Cinemas from Anil Ambani-led Reliance Group for an estimated Rs 700 crore. In July 2014, Inox Leisure acquired Gurgaon-based rival Satyam Cineplexes in a Rs 182 crore deal to strengthen its presence in north India.
PVR shares ended 0.20 per cent higher at Rs 666.70 apiece, compared to 0.27 per cent fall in the broader Nifty. DLF shares ended 0.80 per cent higher at Rs 110.60. (With Agency Inputs)
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.