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PVR cuts deal size to Rs 433 crore, acquires 32 screens of DLF’s DT Cinemas
MUMBAI: Forced by the Competition Commission of India (CCI), multiplex chain operator PVR Ltd has cut down its deal size and will be acquiring 32 screens of DLF-owned DT Cinemas for Rs 433 crore (Rs 4.33 billion).
Under the original agreement, PVR was to acquire 39 screens of DT Cinemas for Rs 500 crore (Rs 5 billion).
PVR’s acquisition will now exclude DT Savitri (one screen) and DT Saket (six screens).
On 30 May, PVR and DLF Utilities Ltd (DUL) executed an amended agreement. “The sale and transfer of the said cinema exhibition business, as a going concern on a ‘slump sale’ basis, has been completed on 31 May,” PVR said in a BSE filing.
PVR will take over the management of the 32 screens from 1 June. DT Cinemas has a presence in National Capital Region (NCR) and Chandigarh.
The DT Cinemas brand name will be changed in the next few months. PVR has the rights to live with the DT Cinemas brand for one year.
As reported earlier, PVR was allowed by the CCI to acquire 32 screens of DT Cinemas. This meant PVR had to let go of seven screens. India’s competition watchdog said the gobbling up of full 39 screens would have made PVR the dominant player in Noida, Gurgaon and South Delhi.
In June 2015, PVR had announced the acquisition of DT Cinemas for Rs 500 crore.
As per the CCI stricture, PVR has also agreed not to acquire any new screens for three years in Noida, as well as Gurgaon, and for five years in South Delhi. It will have to scrap agreements to develop multiplexes with Garden Galleria Mall (Noida) and Airia Mall (Gurgaon).