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INOX to acquire Satyam Cineplexes for Rs 182 crore
MUMBAI: Leading multiplex operator INOX Leisure is acquiring New Delhi-centred Satyam Cineplexes for a total consideration of Rs 182 crore (Rs 1.82 billion).
The proposed acquisition would provide INOX a significant foothold in the North Indian region.
This marks the third acquisition for INOX in less than a decade.
Earlier, the company acquired Calcutta Cine Pvt Ltd in 2007, which triggered the consolidation phase in the multiplex industry. This was followed by the acquisition of Fame India Ltd in 2010.
The current acquisition would add 38 screens to INOX’s property. Given that INOX would be paying Rs 182 crore (Rs 1.82 billion) towards acquisition of these properties, the valuation of each screen works out to Rs 4.79 crore (Rs 47.9 million).
The company will now have presence in 50 cities across the country, with 91 multiplexes and 358 screens.
Speaking on the occasion, INOX Group director Deepak Asher said, “It has been our strategy to expand our multiplex business both organically and inorganically over the years. With this acquisition, we will strengthen our position further in the Industry as well as in the country, especially North India.”
Sounding optimistic about the current acquisition, he went on to add, “Over the next few months, we will evaluate the full benefits of integration and consolidation, to drive competitive advantage across the value chain, and consider our strategic options in accordance with regulatory guidelines.”
Satyam MD Deven Chachra said, “We have painstakingly built this business, and while it is hard to see that one has built with one’s own hands go, I have confidence and faith that INOX will nurture it and take it to greater heights.”
Grant Thornton Advisory acted as sole financial advisors and Khaitan & Co acted as legal advisors to INOX Leisure.
BMR Advisors acted as sole financial advisors and Luthra & Luthra Law Offices acted as legal advisors to the shareholders of Satyam Cineplexes.