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Multiplex operator PVR Ltd said it has revised the terms of its deal with DT Cinemas following an objection by Competition Commission of India. The company has amended the agreement with DLF Utilities to lower the deal value to ₹433 crore from ₹500 crore to complete the deal.
PVR had undertaken this following an objection by fair trade watchdog which had allowed PVR to acquire the DLF group’s multiplex arm provided it fulfils certain conditions.
CCI had said the deal would put PVR in a position of monopoly. DT Cinemas owns and operates 39 screens in Delhi-NCR. However, CCI in its rider said that the PVR can acquire only 32 screens as obtaining all the screens would make it a dominant player in Delhi-NCR.
The amended agreement now excludes DT Savitri (one screen) and DT Saket (six screens) from the sale. PVR now proposes to acquire 32 screens of DT Cinemas in NCR and Chandigarh.
In June, PVR had announced the acquisition of DT Cinemas for ₹500 crore.
As part of the deal, DT Cinemas has been asked by the CCI to sell the other seven screens in South Delhi to any competitor other than PVR.
Currently, PVR has 524 screens across 114 locations in 47 cities. As a result of the proposed acquisition, PVR will have 121 multiplexes and 553 screens.
Commenting on the deal Ajay Bijli, CMD, PVR, Said: “It is another milestone for us. This acquisition is in pursuance of our core strategy to offer a world class cinema experience to the discerning Indian consumer.”
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