PVR offers 10% equity to Thailand's Major Cineplex Group

Under the above arrangement, Major Cineplex Group Plc. would be investing approx Rs420mn into PVR Limited by subscribing to 25.57 lac of new shares.

PVR Ltd., one of the India’s leading retail entertainment companies, announced that it is offering 10% of its equity capital to Major Cineplex Group Plc., one of Thailand’s largest entertainment group. Under the above arrangement, Major Cineplex Group Plc. would be investing approximately Rs420mn into PVR by subscribing to 25.57 lakh new shares.

The investment by Major Cineplex in PVR would be done at a price of Rs165 per share, a premium of 19% over the closing stock price of Rs139 on the NSE, on Thursday, 12th November.

Major Cineplex is Thailand’s leading lifestyle entertainment company with core business in multiplexes, film distribution, lifestyle neighborhood malls, bowling and karaoke, ice skating rink, fitness clubs and advertising media.

The Major Group is listed on the stock exchange of Thailand and currently operates about 350 multiplex screens, 500 bowling lanes, 300 karaoke rooms and 2 ice skating rinks. The company had a turnover of about Rs8050mn in 2008 with a net profit of Rs907mn. 

PVR has presence across multiplexes, film distribution, production and bowling. The company currently operates 108 multiplex screens across the country and intends to add another 100 screens over next 18 months. The endowment from the above investment would be used by the company to fund its long term expansion plans.

“Our partnership with Major is a significant step in the company’s history. While we have enjoyed a great business relationship with Major Cineplex Group over the last 1 year in our bowling venture, both the parties were keen to strengthen the relationship further,” said Ajay Bijli, Chairman and MD of PVR.

“This strategic investment by Major Cineplex would help us to leverage their learnings and expertise in international market. We foresee a tremendous value add in the cinema space and other retail entertainment formats which will help us broad-base the entertainment options that are currently being offered to our Indian customers. This move is both imperative and rudimentary to help transform PVR into an integrated retail entertainment company over the next few years.”
 
Vicha Poolvaraluck, Chairman and CEO of Major Cineplex, said, “We see the Indian entertainment sector growing by leaps and bounds in the coming years and believe that PVR Limited is one of the best companies in the retail entertainment space in India. We have enjoyed a great relationship with the group and sincerely hope that we would be able to add strategic inputs to the company, which will help PVR enhance its unique positioning.

Source: India Infoline