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More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed. Support quality journalism and subscribe to Business Standard. Digital Editor<doc-sep>₹850 crore deal to help PVR reach goal of 1,000 screens by 2020, from 638 now 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. The acquisition will also propel PVR as the seventh-largest cinema exhibitor in the world in terms of annual admissions at its theatres, which will be in excess of 100 million, according to a statement. As on March 2018, SPI had total assets of ₹319.63 crore and a turnover of ₹309.60 crore. Ajay Bijli, chairman-cum-managing director, PVR Ltd., said the transaction is a significant step in helping the firm achieve its goal of 1,000 screens by 2020. The statement added there was also a provision for the customary call/put option for the firm to buy the remaining 28.31% stake in SPI from SS Theatres LLP at an aggregate price not exceeding ₹300 crore, if triggered.<doc-sep>SPI Cinemas – iconic in Chennai as ‘Sathyam’ – to be acquired by PVR The deal is valued at around Rs 633 crore, plus 1.6 million equity shares, and PVR will have over 70% shares in SPI Cinemas. news Business In a crucial business development on Sunday, multiplex chain PVR cinemas announced that they will be acquiring an iconic Chennai brand – SPI Cinemas Pvt Ltd, originally called Sathyam Cinemas. According to a press release by PVR cinemas, the founders of SPI Cinemas, Kiran M Reddy and Swaroop Reddy, will continue to be associated with the business and will provide “strategic guidance in integrating the business with PVR.” “Under the terms of the proposed acquisition, PVR would acquire 222,711 equity shares of SPI Cinemas constituting 71.7 % of the paid up equity share capital of SPI from existing shareholders for a total consideration of INR 633 crores and issue 1.6 mn equity shares of PVR Limited constituting ~3.3% of the diluted paid up equity share capital of the company pursuant to a scheme of amalgamation between SPI and PVR,” a press release from PVR said. According to the Economic Times, the total deal could be valued at around Rs 850 crore. A source close to the Reddys told TNM that the decision to let PVR acquire SPI Cinemas was also partly driven by the fact that operating the business, especially in Tamil Nadu had become tough over the last few years. Ajay Bijli, Chairman cum Managing Director, PVR Ltd said, “The acquisition of SPI Cinemas is of significant strategic value for PVR and will further cement our market leadership position in India. The acquisition will make PVR the undisputed leader in the South Indian market & provide an attractive platform for us to expand in that geography, which currently is highly underpenetrated in terms of multiplexes. Both Kiran and Swaroop have done a tremendous job in building some of the best cinemas in the country and I look forward to their continued partnership with PVR as we take the business to the next level. This transaction is a significant step in helping us achieve our vision of having 1000 screens by 2020.” Kiran Reddy of SPI Cinemas said, “SPI Cinemas has been revolutionizing the movie watching experience for its patrons by consistently bringing in world class technology and innovative offerings. 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.” In 2015, SPI Cinemas sold its 11-screen multiplex Luxe situated in Phoenix Market City, Velachery, to Jazz Cinemas, a firm owned by VK Sasikala's relatives. Though there were rumours that the family had put undue pressure on the Reddys, they have chosen not to reveal the details behind the deal.<doc-sep>
CHENNAI: PVR Limited, India’s largest multiplex chain, on Sunday said it was acquiring Sathyam Cinemas, one of the largest cinema exhibitors in South India , in a cash plus stock deal valued at Rs 850 crore.SPI Cinemas, owners of Sathyam Cinemas, redefined the cinema-going experience in Chennai over the past two decades, first by rebranding a single location Sathyam Cinema, founded in 1974, and later by adding multiple brands under its chain – S2, Escape, Palazzo and The Cinema to cater to different categories. Sathyam now has a network of 76 screens (68 operational and eight set to start operations) with a presence across southern cities and Mumbai. It has a signed pipeline of 100 screens expected to open over coming five years.With this acquisition, PVR will have 706 screens across 152 properties in 60 cities. It will also make PVR the seventh largest cinema exhibitor in the world in terms of annual admissions at its theatres, which will be more than 100 million per annum. SPI Cinemas has an annual footfall of about 17 million and logs in annual revenues of about Rs 420 crore.PVR would acquire a little over 2.22 lakh equity shares of privately-held SPI Cinemas and constituting 71.7% of the paid-up capital of SPI from existing shareholders for a consideration of Rs 633 crore. It will also issue 1.6 million equity shares of PVR Limited, constituting 3.3% of the diluted paidup equity share capital of the company pursuant to a scheme of amalgamation between SPI and PVR.