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PVR to buy 72 per cent stake in SPI Cinemas for Rs 633 crore

After the transaction, PVR will have 706 screens operational across the country and this acquisition will make it the number 1 operator in top 3 cities of South India - Chennai, Bangalore, and Hyderabad.

Mail Today Bureau        Last Updated: August 13, 2018  | 09:48 IST
PVR to buy 72 per cent stake in SPI Cinemas for Rs 633 crore

Multiplex chain PVR Ltd is acquiring 71.69 per cent stake in South India-based SPI Cinemas for Rs 633 crore in an all-cash deal. The company's board has  also approved the issuance of 1.6 million shares of PVR for the residual stake.

In a regulatory filing, PVR on Sunday said that the board has approved the execution of the share purchase agreement. The acquisition involves buying of SPI's 61.65 per cent from SS Theatres LLP and 10.04 per cent equity from S V Swaroop Reddy, it said.

The boards of both the companies have approved merger.

PVR CMD Ajay Bijli said, "The acquisition of SPI Cinemas is of significant strategic value for PVR and will further cement our market leadership position in India."

He said that the acquisition would make PVR the undisputed leader in the South Indian market & provide an attractive platform for the company to expand in that geography. "This transaction is a significant step in helping us achieve our vision of having 1000 screens by 2020," he added.

After the transaction, PVR will have 706 screens operational across the country and, the company said, this acquisition will make it the number 1 operator in top 3 cities of South India - Chennai, Bangalore, and Hyderabad.

The acquisition will have to be completed within 30 days from execution of the agreement and the merger into the PVR Ltd within a period of 18 months from the date of completion of the acquisition.

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