On 08.07.2015, the Competition Commission of India received a notice from PVR Limited relating to acquisition by PVR Limited (PVR) of DT Cinemas, which is the film exhibition business of DLF Utilities Limited comprising 39 screens (29 existing and 10 upcoming) in Delhi, Gurgaon, NOIDA and Chandigarh.
In terms of Section 29(2) of the Competition Act, 2002 (Act), the Commission is of the prima facie opinion that the combination is likely to have an appreciable adverse effect on competition and accordingly has directed PVR to publish details of the combination for bringing the combination to the knowledge or information of the public and persons affected or likely to be affected by such combination.
As per the provisions of Section 29(3) of the Act, the Commission invites comments/objections/ suggestions in writing, from any person(s) adversely affected or likely to be affected by the combination, to be addressed to the Secretary, Competition Commission of India, the Hindustan Times House, 7th Floor, 18-20, Kasturba Gandhi Marg, New Delhi-110001, within fifteen working days from the date of publication of details of the combination.
PVR Ltd acquired DLF’s ‘DT Cinemas’ for Rs 500 crore on a slump sale basis. The board of directors of the company at its meeting held on June 9, 2015, has approved acquisition of the cinema exhibition business of DLF Utilities Ltd.
DT Cinemas, the wholly-owned subsidiary of realty giant DLF, has 29 screens with a seating capacity of more than 6,000, while PVR Cinemas has 467 screens in 105 properties in 43 cities.
As a result of the proposed acquisition, PVR will have a presence in 44 cities with 115 multiplexes and 506 screens.
Multiplex space has been in consolidation phase in the last one year. In January this year, Mexican multiplex chain operator Cinepolis fully acquired Essel Group’s Fun Cinemas for an undisclosed sum.
