PVR, one of the India’s leading retail entertainment companies, has decided to buy out the cinemas owned by India’s largest developer DLF, in a mix of part cash and part stock deal. The total value of the deal is estimated to be around Rs 60 crore.
NDTV Profit reported the story first on August 26. The company will issue 25.57 lakh of its shares to DT Cinemas, representing 10 per cent of the fully diluted paid up share capital apart from making a payment of Rs 20.2 crore to fund the acquisition, PVR said in a filing to the Bombay Stock Exchange.
DT cinemas has 29 screens in Delhi and NCR, of which 26 are operational, while another three screens expected to commence operations in the next six months. PVR has 108 screens across the country.
The deal will be on a slump sale basis (transfer of one or more business undertakings as a result of the sale for a lump-sum consideration without assigning values to individual assets and liabilities), the company said.