DLF to sell DT Cinemas business to PVR
DLF Ltd (“DLF”) today announced that its subsidiary, DLF Utilities Limited, has entered into definitive agreements to sell its cinema exhibition business operated under the brand name of “DT Cinemas”, to PVR Limited, on a slump sale basis for an aggregate consideration of Rs. 500 (Five hundred) crores approx.
DT Cinemas currently operates 29 screens with approximately 6,000 seats across 8 properties in the National Capital Region and Chandigarh. In the next 12 months, DT Cinemas proposes to add 10 new screens at two properties in the National Capital Region.
The proposed transaction will be subject to approval of applicable statutory and regulatory approvals and satisfaction of customary conditions precedent.
Commenting on the deal, Mr. Saurabh Chawla, Sr Executive Director, DLF Ltd, said that “The deal is in line with our strategy to focus on our core business and divest non-core businesses or assets. 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 a more focussed approach for enhancing value especially in our retail mall business”.
“We are pleased to sell DT Cinemas to PVR which is a high quality provider of cinema experience. Combining our unrelenting focus on providing a wholesome experience at our malls with PVR’s deep knowledge of the cinema business, we look forward to continue enhancing our best in class offerings for the customer”, added Mr. Sriram Khattar, CEO, DLF
Commenting on the deal Mr Ajay Bijli, Chairman cum Managing Director, PVR Ltd. said, “This acquisition is in pursuance of our core strategy to offer a world class cinema experience to the discerning Indian consumer.”
EY India and Luthra & Luthra were the financial and legal advisors respectively to DLF and Shardul Amarchand Mangaldas & Co was the legal advisor to PVR on the transaction.
DLF has over 68 years of track record of sustained growth, customer satisfaction, and innovation. The company has 290 msf of planned projects with 45 msf of projects under construction. DLF’s primary business is development of residential, commercial and retail properties. The company has a unique business model with earnings arising from development and rentals. Its exposure across businesses, segments and geographies, mitigates any down-cycles in the market. From developing 22 major colonies in Delhi, DLF is now present across 15 states-24 cities in India.