DLF Limited, India’s Largest Real Estate Firm, has sold its seven cinemas to cinepolis India for Rs. 64 crore on Tuesday in Delhi. Out of seven screens, they have sold six in Saket and one in Greater Kailash 2. They have sold after completing its exits from the movie business after PVR Cinemas acquired the majority of its business.
Previously the company has sold 32 cinema screens to the PVR Ltd for Rs 433 crore after Competition Commission of India has raised the objections. The actual value of the deal is Rs 500 crore, but the PVR ended up by buying 32 screens of DT Cinemas in Chandigarh and the National Capital Region for Rs 433 crore.
“DLF Utilities Ltd. has completed a transaction today with Cinepolis India for sale and transfer of remaining seven screens pertaining to DT Cinemas (Saket-6 screens & Greater Kailash Part II – 1 screen) as a going concern on a slump sale basis for a consideration of Rs 63.67 crore upon receipt of CCI approval,” DLF said in a Bombay Stock Exchange filing. With the closure of this transaction, the company will exit the cinema exhibition business.
“This is in line with the company’s strategy to focus on company’s core business and divest non-core businesses or assets,” it added.
Cinepolis India has 226 operational cinema screens in India under the brand names of Cinepolis, Cinepolis VIP, Fun Cinemas and Cinema Star. It operates in India from seven locations with 17 screens. Currently, the Indian Movie Exhibition Market was dominated by four Companies. PVR cinemas own a maximum number of 512 screens, Inox Leisure Limited with 420 screens, followed by Carnival cinemas with 341 screens and Cinepolis with 226 Cinema screens.
In last few years, the DLF has existed from several noncore businesses to reduce the debut. The company, which has been started its work from 2009, and the DLF wholly-owned Mexico Cinemas is the world’s fourth largest cinemas. At Present it is operating more than 465 multiplexes with over 4,300 screens in 13 countries.