CHENNAI: PVR Limited, India’s largest multiplex chain, on Sunday said it was acquiring Sathyam Cinemas, one of the , 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. 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.
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