Mexican Film exhibitor Cinepolis
and Kochi based Carnival Films Pvt. Ltd are in separate talks to buy SRS Ltd to
buy its Cinema exhibition business. This gives the signal of further
consolidation in the movie exhibition industry. Process was initiated sometime
back and the valuation discovery process is on now.
The transaction, if concluded, will
add to a rush of acquisitions seen in the multiplex business. In 2014, four
such deals valued at over Rs. 1,410cr have been closed. Both Cinepolis and
Carnival have bought assets in India this year. A fortnight ago, Carnival Cinemas,
backed by Kochi-based commodity trader Advantage Overseas Pvt Ltd, acquired Big
Cinemas, the multiplex business of Anil Ambani Reliance MediaWorks Ltd for
close to Rs. 700cr. In July, Carnival Cinemas acquired Housing Development and
Infrastructure Ltd exhibition business, Broadway Cinemas, for an undisclosed
amount.
Carnival now has 300 screens. In December,
Cinepolis has acquired Zee group owned Fun Cinemas for Rs. 470cr. Cinepolis has
seventeen properties spread across Bengaluru, Pune, Mumbai, Jaipur, Bhopal,
Surat, Mangalore, Hubli, Ahmedabad, Amritsar, Hyderabad, Ludhiana, Patna,
Vadodara, Vijaywada, and Pune. The deal with SRS cinemas will help both
contenders increase their presence in smaller cities in Northern India.
SRS has 17 properties with 48
screens spread across 11 cities that include Ghaziabad, Gurgaon, Shimla,
Lucknow, Gorakhpur, Faridabad, Bhiwadi, Ludhiana, Patiala, Bareli, and Agra. Apart
from the cinemas business, SRS has exposure in the retail food and Beverages,
jewellery, real estate, and healthcare segments. PVR Ltd is the largest
exhibitor with 454 screens spread across 102 properties. PVR is in talks to
acquire Chennai based SPI Cinemas. The second position has been held by Inox
Ltd, which shows movies with its 358 screens. It added 50 screens after
acquiring Satyam Cineplexes.
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