The country's largest theatre chain PVR has terminated the acquisition agreement with DLF--the country’s largest realty developer-- to acquire DT cinemas.
"Deferring the issuance of shares to DT Cinemas due to certain pending compliances by DT Cinemas for successful completion of the acquisition," the company said in its statement to the Bombay Stock Exchange.
PVR has announced its intention to acquire DT Cinemas in November last year. The cash-and-stock deal, according to the deal was to be automatically terminated if the conditions for the acquisition are not satisfied with 60 days of the acquisition agreement.
Further, the parties had mutually agreed to extend the time for completion of the conditions precedent by DT Cinemas until February 15, 2010. The intimation for such extension of time period was sent in terms of the letter dated January 27, 2010.
Under the deal, PVR (with an annual turnover of Rs 387 crore) will issue 2.5 million shares to DT Cinemas representing 10 per cent of PVR's fully diluted paid-up capital.
If the deal would have been successful, PVR would have control over 138 screens India-wide, which amounts to a 20 per cent national share. The acquisition would have enabled PVR to close the gap between it and Anil Ambani-promoted Big Cinemas, which has over 200 screens, and widens its lead over Inox which currently runs over 105 screens and has been closing in on PVR.
