India’s largest multiplex operator PVR Cinemas has bought off 71.7 per cent stake of the SPI Cinemas Pvt. Ltd. and expand its reach in the rewarding south Indian market, the hub highly profitable of Tollywood.
PVR Cinemas is no new name in India with a major footprint across India, however, the hold of India’s largest multiplex operator PVR Cinemas in the profitable southern India was not to the par. To expand its realms to South India, PVR Cinemas has bought off 71.7 per cent stake of the SPI Cinemas Pvt. Ltd, which is the largest cinema exhibitor in south India. As per the agreement, “PVR would acquire 222,711 equity shares of SPI Cinemas, constituting 71.7 % of the paid-up equity share capital of SPI, from existing shareholders for a total consideration of Rs 633 crore”.
SPI Cinemas will also issue 1.6 million equity shares of PVR Ltd, constituting approximately 3.3% of the diluted paid-up equity share capital of the company, pursuant to a scheme of amalgamation between SPI and PVR. After the transaction will possibly be closed in the next 30 days, PVR will own majority of SPI’s coverage, including a network of 76 screens across 17 properties covered in 10 cities located in places like Tamil Nadu, Telangana, Karnataka, Kerala, Mumbai and Andhra Pradesh. SPI Cinema also operates other multiplex brands like Palazzo, The Cinema, S2 and Escape across south India.
Besides these, there are more than 100 screens which are in the pipeline and likely to be operated by SPI in the period of next five years. This acquisition will make the total screen count of PVR reach up to a phenomenal mark of 706 across 152 properties in 60 cities – letting PVR emerge as an outright multiplex movie broadcasting leader in South Indian terrain. With the latest acquisition and PVR’s previous buys like the highly popular multiplex network, Cinemax in 2013 and DT Cinemas in 2016, PVR will become the seventh largest cinema exhibitor across the world.