PVR acquires DT Cinemas

PVR will acquire DT Cinemas (DT) for a consideration of Rs. 500 crores subject to approvals. DT is owned by realty major DLF. 

DT Cinemas operates 29 screens with 6,000 seats across eight properties in the National Capital Region (NCR) and Chandigarh. It will add 10 more screens across two properties in the NCR in 12 months. DLF will bear the capital expenditure for the 10 screens and will hand over completed properties to PVR. As a result of the proposed acquisition, PVR will have a presence in 44 cities with 115 multiplexes and 506 screens, PVR said in a statement.

Land is not a part of the deal; PVR will pay rent to DLF after acquisition.Financial details of DT are unavailable. However, PVR expects to generate annual EBITDA of Rs.43-44 crores from the 39 screens in their first full year of operations after integration assuming some synergy benefits. 

For DLF, the deal is part of its strategy to exit non-core businesses and cut huge debt of over Rs.20,000 crores. It has already sold hotel chain Aman Resorts as well as insurance and wind power businesses.