PVR To Get Hold Of Sathyam Cinemas, Says Reports

BANGALORE: Ajay Bijli could be making the biggest deal of his career as well as for India's multiplex sector. Bijli’s PVR group is all set to get hold of Chennai's leading movie exhibition company SPI Cinemas, commonly known as Sathyam Cinemas, reports Economic times.

Numerous sources are aware of the on-going discussions affirmed save last-minute developments and that there is a possibility that the deal will close for a sharp valuation of approximately Rs 750-1,000 crore for meager 40 odd screens, situated chiefly in the Southern metro. Keeping this in mind, a month earlier Carnival Cinemas offered over Rs 700 crore to overthrow Anil Ambani's Big Cinemas that comprises of 242 screens across the country.

This calls attention to the budding frenzy off late that has spellbound the multiplex industry  with  5 deals in 12 months, estimated over Rs 1600 crore. Theatre operators are trying to pick up their bargaining power with film studios and allocation companies to increase a larger share of box office receipts. Moreover, due to long-drawn-out delays in commercial real estate, dominant players consider inorganic growth to greenfield developments as it is faster.

At present, SPI Group runs a cinema exhibition, distribution and production business. However, they are known for their collection that bares some of the most iconic cinema destinations across South India. The company's website states that it presently functions close to 40 screens under 5 categories -- Sathyam, Escape, the cinema, Luxe, the uber premium offer. S2 Cinemas is said to open over 50 screens by early 2015.Nonetheless, PVR is the biggest cinema exhibitor in the country with 454 screens in 102 sites across 43 cities.

"We are exploring several options to raise capital and are also in talks with several PE players. We have not taken any final call on the future course of action. A sale is an option but at this moment I have nothing to comment about on any valuations or potential discussions as nothing has firmed up yet," said Kiran Reddy, Chief Executive Officer of SPI Group.

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