India’s leading multiplex chain PVR and Cinépolis India are in advanced merger talks, with the deal “moving quickly toward fruition” and result in the combined behemoth owning more than 1,200 screens.
According to The Economic Times, PVR and the local unit of Mexican company Cinépolis are in advanced merger talks potentially reshaping the country’s film exhibition industry that witnessed its first phase of consolidation over the past decade and a half. “While the finer details are being worked upon, Cinépolis will be the largest shareholder in the merged company, with around a 20% stake,” the publication quoted a source as saying.
“PVR promoters will own between 10% and 14%, but Ajay Bijli (CMD of PVR) will have complete management control for at least three years. Cinépolis will have board seats in the merged company,” the source added. Another executive said the merger could be announced by the end of March, “Both parties are moving quickly.”
The executive further added, “This merger will not require approval from the Competition Commission of India as the combined revenues of the two companies are well below Rs 1,000 crore due to Covid-led disruptions.”
PVR currently operates 846 screens in 176 cinemas in 71 Indian and Sri Lankan cities, with an aggregate seating capacity of 182,000 while Cinepolis India has 417 screens spread across 93 properties at 61 locations in 22 states. Together, the merged company will operate 1,263 screens across 269 locations. The number of screens run by the next big multiplex chain, INOX Leisure, is just about half of what the merged company would operate, with the rival operating 160 multiplexes and 675 screens in 72 cities.
PVR has become India’s biggest multiplex player over the years. As reported by ET, in the past, PVR acquired Cinemax (138 screens) in November 2012, DT Cinemas (32 screens) in May 2016, and SPI Cinemas (76 screens) in August 2018. The company also has around 100 screens under fit-outs currently, which could be launched in the next 12 months. Meanwhile, Cinépolis India is a wholly owned subsidiary of Cinépolis and is the first international exhibitor in India.
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