India’s PVR to buy 71% stake in SPI Cinemas for $90.5 mln

PVR, an Indian entertainment company, has agreed to buy a 71.7 percent stake in film production company SPI Cinemas for 633 crore rupees ($90.5 million), a move that will help the multiplex operator boost its presence in the lucrative south Indian market.

According to the deal, PVR would acquire 222,711 equity shares of SPI Cinemas, constituting 71.7 percent of the paid-up equity share capital of SPI, from existing shareholders for a total consideration of $90.5 million.

On completion of the acquisition, PVR’s total screen count will increase to 706 across 152 properties and 60 cities.

For fiscal 2018, SPI generated a revenue of $44.3 million. For the corresponding period, revenues of PVR stood at $338.2 million. The transaction is likely to be closed in the next 30 days.