)
Multiplex chain INOX Leisure Ltd (INOX), which acquired 100% stake in New Delhi-based Satyam Cineplexes Ltd (Satyam) for Rs 182 crore, targets to have about 514 screens under its portfolio over the next two years.
"We have already tied up with a lot of new properties. Once completed, we'll have 514 screens with 1,30,104 seats across 127 properties in 64 cities. We hope most of these will be operational over the next 12 to 24 months," Deepak Asher, director, INOX Group of Companies, said.
At present, INOX has 320 screens across 82 properties in 45 cities. The acquisition of Satyam, which is the third acquisition by INOX, it will take its screen count to 358, across 91 multiplexes and 50 cities. The Mumbai-based multiplex chain is fast catching up with market leader PVR Cinemas, which has 400 screens across the country. The acquisition will give INOX an entry into Delhi and strengthen the company's position in north India.
"In the coming years, we'll keep on expanding both organically and through acquisitions. But, there is no discussion going on right now," said INOX chief executive officer Alok Tandon.
INOX had earlier acquired Kolkata's Calcutta Cine Private Ltd in 2007 and Fame India Ltd in 2010.
According to Asher, the deal will be primarily funded through debt, while about a fifth of the deal value might be financed through internal accruals.
Asher estimates the brand integration and upgrade of Satyam properties will be carried out within a year.
For the deal, Grant Thornton Advisory was the financial advisor, while Khaitan & Co was the legal advisor to INOX. For Satyam, BMR Advisors was the financial advisor, while Luthra & Luthra Law Offices was the legal advisor.
Vivek Gupta, partner (mergers and acquisitions), BMR Advisors, says, "Satyam has three marquee properties in Delhi-Nehru Place, Janak Place and Patel Nagar. This gives Inox a strong entry into the Delhi market; it was definitely one of the drivers for the deal." Satyam Cineplexes has a total of 38 screens. The company also has multiplexes in Indore, Jodhpur, Aurangabad, Rohtak and Mysore and is setting up screens in Amritsar, Bhilwara and Bangalore.
Deepak Asher, director, INOX Group of Companies, said, "Through the years, it has been our strategy to expand our multiplex business both organically and inorganically. With this acquisition, we will further strengthen our position in the sector, as well as in the country, especially north India. We look forward to take advantage of our vast reach across the length and breadth of the country and offer a one-stop platform to the complete value chain of film producers and distributors, right to the end consumer."
"Through the next few months, INOX will evaluate the benefits of integration and consolidation to drive competitive advantage across the value chain and consider our strategic options, in accordance with regulatory guidelines."
