PVR to acquire DLF DT Cinemas

Realty major DLF plans to sell ‘DT cinemas’ and is in talks with potential buyers including PVR Ltd, as part of its strategy to exit non-core businesses and cut huge debt of over Rs. 20,000 crore. This would be PVRs second attempt to acquire DT Cinemas after 2009, when it entered into definitive agreement with the DLF group.

India currently has 1,700 multiplex screens with PVR leading the market with 454 screens while the second ranked Inox owns 361 screens. DT Cinemas currently operates 29 screens in National capital Region of Delhi and Chandigarh. It will ramp up its operations to 39 screens by 2016. It is one of the significant players in the Delhi and the NCR with 18 screens in Delhi, eight in Gurgaon and another three in Chandigarh.

In December, Carnival acquired Anil Ambani Big Cinemas for an enterprise valuation of a little over Rs 710 crore. Inox Leisure, acquired Delhi based Satyam Cineplexes for nearly Rs 240 crore. Inox expanded its presence to 50 cities, with 91 Multiplexes and 358 screens. Housing development and Infrastructure sold its Multiplex business Broadway Cinemas to Carnival Cinemas, and Mexican Multiplex chain Cinepolis bought Fun Cinemas.

Though DLF Assets are located at prime places and command premium, the deal value is on the higher side in comparison to other deal that included in the recent past, indicating that the space getting more competitive.