The seven screens still with DLF’s cinema chain, DT Cinemas, have been acquired by Mexican multiplex chain Cinepolis.
DLF disclosed in a filing on the BSE exchange that the screens were sold for Rs 63.7 crore. The deal is subject to approval from the Competition Commission of India (CCI).
The properties in question are in South Delhi — six screens in the locality of Saket and one in Greater Kailash-II. DLF has, thus, exited the cinema exhibition business. The company used to operate 39 screens and had initially signed an agreement with Ajay Bijli’s PVR Cinemas for the sale of all. CCI objected and the deal was reworked; this May, PVR acquired 32 of the screens.
This acquisition increases Cinepolis’ presence in India to 267 screens. The company is present in 41 Indian cities, including Delhi, Mumbai, Kolkata and Bengaluru. Cinepolis India has also been strategically targeting tier-I/tier-II cities like Hyderabad, Kochi, Vadodara, Pune, Ahmedabad, Lucknow, Amritsar, Bhopal, and Vijayawada, to grow its brand presence.
Javier Sotomayor, managing director, Cinepolis India, said they’d refurbish the screens it had bought. Adding: “We have plans to transform these into landmark properties…we have strengthened our presence to 24 screens in Delhi.”
Sriram Khattar, head of the rental business at DLF India, said: “This deal is in line with our strategy to focus on our core business.”
YES Securities, a subsidiary of YES Bank, and J Sagar Associates were the financial and legal advisors, respectively, to Cinepolis India on this transaction. And, EY India and Luthra & Luthra were the financial and legal advisors, respectively, for DLF.