Chennai: The multiplex chain PVR cinemas announced Sunday that they will be acquiring the iconic Chennai brand SPI Cinemas, which was originally called Sathyam Cinemas. According to a press release from 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 Rs 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. The deal is said to be totally worth about Rs 850 crore.
Ajay Bijli, CMD, 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 and 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 revolutionising 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.”
