The Mumbai-based multiplex chain is in the process of acquiring a premier local multiplex brand called 89 Cinemas promoted by Calcutta Cine Pvt Ltd.
MUMBAI: Inox Leisure Ltd (INOX), one of India’s premier multiplex chains, is all set to make a big splash in the West Bengal film exhibition market. The Mumbai-based multiplex chain is in the process of acquiring a premier local multiplex brand called 89 Cinemas promoted by Calcutta Cine Pvt Ltd (CCPL).
INOX signed the all-share-swap deal with CCPL on June 23 and the matter is under due diligence. ENAM Financial Consultants Pvt Ltd is advising INOX on the deal. Evaluation of 89 Cinemas will be done by an independent valuer, who will be named shortly.
Speaking to DNA Money, Deepak Asher, director of Inox Leisure, said the proposed deal will be subject to due diligence, final approval by shareholders, creditors and the high court.
“Both the companies will be valued keeping in mind the operational projects and those in the pipeline. The valuation and due diligence should be completed over the next 3 to 4 weeks’ time,” said Asher.
89 Cinemas is currently operational as a 4-screen multiplex at Swabhumi in Kolkata with another 3-screen multiplex expected to be launched next week at Durgapur in West Bengal. This apart, CCPL has tied up properties for building and operating six other multiplexes in West Bengal and Assam.
The company also has an understanding with Bengal Ambuja Housing Development Ltd (Bengal Ambuja), giving it preferential access to all its properties.
The proposed buy will enhance INOX’s pan-India presence in movie exhibition — primarily in East India. The film exhibition company currently operates 2 multiplexes in Kolkata (Elgin Road and Salt Lake) and 1 in Darjeeling (Laden La Road).
It plans to open new multiplexes in Diamond City, Jessore Road with 5 screens and at Kharagpur with 4 screens. The agreement with CCPL will take INOX’s tally of multiplexes in West Bengal & Assam up to 13. While 89 Cinemas enjoys a good recall value with moviegoers, post its acquisition, the new owners will re-brand the existing and future multiplexes as INOX.
89 Cinemas is promoted by CCPL, which is a joint venture between the Bengal Ambuja Group, along with its associates, and Consolidated Entertainment Pvt Ltd (CEPL) that manages the company’s affairs.
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