PVR set to renegotiate DT Cinemas deal with DLF
MUMBAI: Multiplex cinema operator PVR is set to renegotiate the deal with realty major DLF to acquire its cinema exhibition business DT Cinemas, after the competition regulator gave its nod to the acquisition with some riders.
The Competition Commission of India (CCI) has asked PVR to exclude two properties of DT Cinemas in Delhi DT Savitri (1screen) and DT Saket (6 screens) from the acquisition. Industry insiders believe the acquisition value would be brought down from the earlier Rs 500 crore.
“PVR was supposed to pay Rs 500 crore for 39 screens across 10 properties to DLF. That deal will now be renegotiated,” said one of two people with knowledge of the development.
“Obviously PVR is looking at reducing the payout for the deal and now it has a reason too. PVR had already gone overboard to offer Rs 500 crore, which comes out at Rs 12.82 crore per screen. That is way higher than any deal that the sector has seen,” said one of the persons, asking not to be named.
Analysts believe the renegotiated deal size could be around Rs 400-450 crore.
EThad reported on March 7, 2016 that PVR may be looking to renegotiate terms of deal to acquire DT Cinemas. Spokespersons of both DLF and PVR declined to comment saying they are studying the CCI order.
DLF has been trying to exit its non-core business of operating cinemas among other non-core businesses.
With CCI asking for two properties to be excluded from the deal, the second person quoted above said it will not make sense for DLF to operate two cinemas on a standalone basis.