Multiplex operator Inox Leisure on Wednesday said it would acquire Gurgaon-based rival Satyam Cineplexes in a Rs 182-crore deal, which would strengthen its presence in North India.
The Mumbai-based exhibitor will acquire 100 per cent equity share capital of Satyam from its promoters, Inox said in a statement.
The company's board at its meeting "approved the acquisition of 100 per cent equity shares of Satyam Cineplexes for a total consideration of Rs 182 crore", Inox said in a filing to the BSE.
Post acquisition, Inox would be present in 50 cities with 91 multiplexes and 358 screens, it added.
"The proposed acquisition of one of the industry's prime assets, is a part of Inox's strategy to expand its footprint across the country and gives INOX a significant foothold in the North Indian region," the company said.
This is the third acquisition of Inox in last seven years. In May 2013, Inox had merged Fame India, a multiplex cinema theater firm, with the company after acquiring controlling stake in 2011.
Similarly, in 2007, Calcutta Cinema Private Ltd (CCPL) a West Bengal-based multiplex theater firm was merged with INOX.
Commenting on the development Inox Group of Companies 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".
Satyam Managing Director Deven Chachra said: "This deal marks a complete exit for us from this business with Inox having bought 100 per cent of the equity in the company and having assumed its liabilities and taken over its assets".
However, Chachra also added that regarding three Delhi sites, it would continue its partnership with Inox in the form of a long term lease.
Inox has presence in 44 cities and operates 80 multiplexes with 313 screens. It is expanding at smaller places such as Jammu, Mangalore etc.
Meanwhile, Satyam Cineplexes operates 38 screens in 6 cities with 9 multiplexes. It has presence in northern region at places such as Delhi, Rohtak, Amrtisar, Jaipur, Indore. It has also presence at Mysore and Aurangabad.