PVR buys out JP Morgan, ICICI stake in movie arm
06 July 2011
Indian entertainment group PVR Ltd said on Tuesday it has purchased the entire 40-per cent equity stake held by JP Morgan Mauritius Holdings and ICICI Venture's India Advantage Fund in PVR Pictures, which has now become a wholly owned subsidiary of PVR.
PVR said without disclosing financial details that it has bought out the stake as it looks to focus on cinema exhibition while going slow on the cinema production business. The 40 per cent stake was held by JP Morgan and ICICI Venture in equal proportion.
"PVR has decided to focus aggressively on the cinema exhibition business and go slow on the production business for the next couple of years. So the company wanted to have 100 per cent control over PVR Pictures and keep it as a wholly-owned subsidiary," PVR chief financial officer Nitin Sood told PTI.
When asked about the deal value Sood did not disclose the exact numbers but said, "We have used a large part of cash lying with the company to fund this deal."
The movies co-produced by PVR Pictures include Taare Zameen Par, Jaane Tu Ya Jaane Na, Contract and Mere Khwabon Mein Jo Aaye. Apart from the movies co-produced, some of the other movies distributed by PVR include Ghajini, Golmaal Returns, Sarkar Raj, Aviator, Chicago, and Don.