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Multiplex chain Inox Leisure Ltd is set to acquire Delhi-based Satyam Cineplexes. The company said it had executed transaction documents to acquire 100 per cent of the equity share capital of Satyam from its existing shareholders for a consideration of ₹182 crore, subject to closing.
The company said this deal would give it a significant foothold in the North Indian region. With this acquisition, Inox will expand its presence to 50 cities with 91 multiplexes and 358 screens. This is the company’s third acquisition in seven years, after it acquired Fame India in 2010 and Calcutta Cine Pvt Ltd in 2007.
Satyam Cineplexes has a total of 38 screens now in Amritsar, Mysore, Rohtak, Aurangabad, Jodhpur, Indore and New Delhi and another 30 are in the pipeline in six cities.
Expanding in N. India In a statement, Deepak Asher, Director, Inox Group of Companies, said, “It has been our strategy to expand our multiplex business both organically and inorganically over the years. With this acquisition, we will strengthen our position further in the industry as well as in the country, especially North India.”
He said the company would take advantage of its reach to become a one-stop platform to the complete value chain of film producers and distributors, right to the end consumer. “Over the next few months, we will evaluate the full benefits of integration and consolidation, to drive competitive advantage across the value chain, and consider our strategic options in accordance with regulatory guidelines,” he added.
Satyam Cineplexes MD Deven Chachra said in the statement: “Our partnership with the Inox family will continue in the form of a long-term lease in respect of the three Delhi sites.” The Chachra family will continue to own the three sites in Delhi — Nehru Place, Janakpuri, Patel Nagar — but will lease them to Inox for operations.
The multiplex industry has been witnessing consolidation for some years. Jehil Thakkar, head of media & entertainment, KPMG India, said, “In the exhibition industry, scale is important and gives leverage while negotiating with film studios, distributors and real estate players. Due to the slowdown, there has been little opportunity to expand organically due to lack of enough commercial real estate opportunities.”
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