PVR Acquires South India-based SPI Cinemas for Around Rs 8.5 Billion
Multiplex chain PVR Ltd has made an announcement that it is going to acquire South India’s largest premium cinema exhibitor, SPI Cinemas Private Ltd for over Rs. 860 crore.
As per the deal PVR will acquire 71.7 percent of SPI including 222, 711 equity, shares of SPI Cinemas. However as per the two companies, both of SPI’s key executives, 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 and create value for all the stakeholders.
SPI Cinemas holds a key market in South Indian states, which includes Andhra Pradesh, Telangana, Tamil Nadu, Kerala, Karnataka and Mumbai.
Post the acquisition, PVR’s total screen count will increase to 706 screens across 152 properties and 60 cities. The acquisition will also propel PVR as the 7th largest cinema exhibitor in the world in terms of annual admissions at its theatres, which will be in excess of 100 million.
SPI Cinemas, PVR said, has the highest occupancies across all organised multiplex chains in the country and is expected to achieve annual admissions of approx. 16-17 million in FY19 and revenues of Rs 410- 420 crore.
