Sathyam Cinemas will be acquired by PVR Cinemas soon.
PVR cinemas have announced that, as a business development strategy, they will soon be taking under the iconic Chennai brand of cinemas- SPI Cinemas.
The chain of SPI Cinemas, also known as Sathyam Cinemas is an iconic brand of cinemas in South India. The chain was established in Chennai in 1974 and since then, it has been providing the South Indian audience an ultimate cinematic experience.
PVR Cinemas is an Indian film entertainment company and was first established in 1995. Noteworthy, it has now become one of the world’s leading entertainment chains.
About the deal.
PVR cinemas added in their press release that the founders of Sathyam cinemas will stay associated with the business. He also added that this will help in the futhermore development of it.
In accordance to the current news, the overall deal is fixed at INR 850 crores. PVR cinemas will take over 222,711 equity shares of SPI and will issue 1.6 mn equity shares to SPI as well.
The chairman and managing director of PVR Ltd., Mr. Ajay Bijli, says that this acquisition will help them achieve their vision of owning 1000 screens by 2020.
The SPI cinemas, currently own 76 screens in 10 cities. Ajay Bijli also added that the work done by Sathyam cinemas in southern region is very impressive and that he is looking forward to work along with the founders of sathyam cinemas.
This deal is a mutually beneficial one for both the chains. Sathyam cinemas were facing problem in managing the screens in some parts. As they have invested a lot of time and money in the projects, this deal will eventually prove to be a payback opportunity for them and as for PVR Cinemas, the deal will help them out in the race of world’s biggest multiplexes chain. This deal will help Ajay Bijli in penetrating their business in the southern part of the country.