PVR Group likely to buy Sathyam Cinemas in Rs1,000-cr deal

In what could be one of the biggest deals in India's multiplex sector, the PVR Group is reportedly preparing to buy Chennai-based SPI Cinemas - popularly known as Sathyam Cinemas – in a deal worth Rs700-1,000 crore.

According to a report in The Economic Times, the deal would be for some 40 cinema screens, mainly located in South India.

PVR Cinemas, one of the leading cinema chains in India, began as a joint venture between Priya Exhibitors Pvt Ltd and Village Roadshow Ltd in 1995 with a 60:40 ownership ratio.

The Ajay Bijli-owned group had on 29 November 2012 bought a 69.27-per cent stake in Cinemax for Rs395 crore, which made PVR the largest cinema chain in India (See: Reliance MediaWorks selling multiplexes to Carnival Cinemas).

Amid increasing M&As in India's multiplex sector, in December 2014, Carnival Cinemas bought 242 screens from Anil Ambani's Big Cinemas for a little over Rs700 crore.