PVR is working on renegotiating the terms of DT Cinemas deal with DLF after the Competition Commission of India (CCI) approved the transaction albeit with some changes.
Last June, PVR had announced the acquisition of DT Cinemas for Rs 500 crore after aborting a similar deal in February 2010.
CCI approved the DLF DT Cinemas acquisition deal but asked the companies to exclude certain assets from the deal to address anti-competitive concerns.
After prima facie finding that the transaction could impact competition in the relevant market, CCI, last year, had put the deal for public scrutiny.
In a tweet, the watchdog said it has cleared “PVR’s acquisition of DT Cinema’s multiplexes/single screen theaters in Delhi NCR and Chandigarh, subject to modification”.
In a regulatory filing, DLF said now, the deal will exclude seven screens — DT Savitri (one screen) and DT Saket (six screent), according to The Economic Times.
According to the sources, the deal value would be reduced by around Rs 50-60 crore as the size of the seven screens to be excluded from transaction are small.
“… the CCI has approved the proposed combination in relation to acquisition of DT Cinemas, with certain modifications, which inter alia include exclusion of DT Savitri (1 screen) and DT Saket (6 screens) from the proposed combination,” the company’s filing said.
Meanwhile, PVR said it is assessing the order and would take appropriate action in due course.
Both parties are initiating the necessary steps to successful closing of this transaction, DLF, the country’s largest realty firm said.
The transaction had originally envisaged PVR acquiring 39 screens of DT Cinemas from DLF with a total capacity of around 9,000 seats.
Meanwhile, this is at least the third time in the recent years, when the Competition Commission of India (CCI) has called for divestment of assets in a big ticket deal as a condition for approval.
In two mega transactions — the $4-billion Sun Pharma- Ranbaxy and Holcim-Lafarge deals — CCI had called for divestment of certain assets by the entities to address anti-competition concerns.