PVR, the country’s most sought-after cinema brand is all set to expand its footprints in the southern market and in order to take over markets in Karnataka, Kerala, Telangana, Andhra Pradesh and Tamil Nadu, PVR is all set to buy the southern biggie SPI Cinemas. Established in 1974, in Chennai with Sathyam Cinema, SPI cinema. SPI cinema has also signed a deal for 100 screens to be rolled out in next 5 years.
The terms of the proposal are such that enable PVR to acquire equity shares of SPI Cinemas, constituting 71.7 percent of the paid-up equity share for a total consideration of Rs 633 crore and issue 1.6 mn equity shares of PVR Limited constituting 3.3 percent of the diluted paid up equity share capital of the company
What PVR Has To Say
This acquisition would really strengthen the roots of PVR as a brand, all over the country. “The acquisition will make PVR the undisputed leader in the south Indian market and provide an attractive platform for us to expand in that geography, which currently is highly under-penetrated in terms of multiplexes. This transaction is a significant step in helping us achieve our vision of having 1,000 screens by 2020”, said, chairman-cum-managing director of PVR Ltd Ajay Bijli.
Kiran Reddy of SPI Cinemas “consistently bringing in world-class technology and innovative offerings, we are all set to enhance the movie watching experience for our customers.” “We are excited to now partner with the largest Indian multiplex chain PVR as this combines two proven business models and will create significant value for moviegoers as well as all the stakeholders,” he added.
With a lot of mergers happening across the country, wherein we see two giants collaborating for a better and bigger future, don’t you think today business has become all about collaborating and growing together, unlike the older times. Is it a good change, tell us what you feel about it!