With this acquisition, PVR will get control of over a quarter of the multiplex screens in the country as exhibitors try to increase their bargaining power with film producers and distributors and capture a bigger share of box office receipts in India’s Rs 9,200-crore movie industry.
“The deal is in line with our strategy to focus on our core business and divest non-core businesses or assets,” Saurabh Chawla, senior executive director at DLF, said in a statement.
“It is also reflective of the value embedded in our core assets and demonstrates our commitment to increase shareholder value. It shall provide the management with a more focused approach for enhancing value, especially in our retail mall business.” he added.
“This acquisition is in pursuance of our core strategy to offer a world-class cinema experience to the discerning Indian consumer,” said Ajjay Bijli, chairman and managing director of PVR. The company had unsuccessfully bid for DT Cinemas in 2009.