PVR To Acquire SPI Cinemas

PVR to acquire SPI Cinemas

PVR Ltd. will buy SPI Cinemas, south India’s largest cinema chain and owner of the iconic Sathyam Cinemas in Chennai in a transaction valued at ₹850 crore.

The deal would help PVR, which is listed on the stock exchanges, strengthen its base in Tamil Nadu, a key movie market.

As per the terms of the proposal, PVR would buy 2,22,7711 equity shares or 71.7% stake in SPI Cinemas from existing shareholders for a total consideration of ₹633 crore. This involves buying 1,91,534 equity shares or 61.65% stake of SPI from SS Theatres LLP and 31,177 equity shares, or 10.04% stake, in SPI from S.V. Swaroop Reddy, respectively. Further, PVR would issue 1.6 million shares or 3.3% shares in PVR as part of the transaction. Based on PVR Ltd.’s closing share price of ₹1,317.20 on Friday, the 3.3% stake amounts to ₹210.75 crore. Overall, the cash and stock transaction is valued at ₹843.75 crore. PVR currently operates a cinema circuit comprising 638 screens at 137 properties in 54 cities (19 States and UTs), serving 76 million patrons annually.

Post-transaction, PVR’s total screen count will increase to 706 screens across 152 properties and 60 cities.


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