Media and entertainment companies are high up on the radar of private equity firms with almost 45 deals sealed in the sector in 2007.
MUMBAI: Media and entertainment companies are high up on the radar of private equity firms with almost 45 deals sealed in the sector in 2007.
And this year, what is being touted as one of the biggest private equity investments in the sector, the PE arms of JPMorgan Chase Bank NA and ICICI Bank have jointly invested Rs 120 crore in PVR Pictures.
PVR Pictures Ltd is a film production and distribution company that is exploring and developing expansion plans. JPMorgan and ICICI Ventures will each invest Rs 60 crore in PVR Pictures.
ICICI Ventures has earlier held about 20% in PVR Ltd, before it divested its holding. However the company, along with JPMorgan, will now together hold about 40% stake in PVR Pictures and the remaining 60% stake will be with PVR Ltd.
The transaction is expected to enable the parent, PVR Ltd, to become a fully integrated film and entertainment company with interests across the entire value chain including production, distribution and exhibition.
“PVR Pictures has got a promising movie line-up and their co-production with Aamir Khan Taare Zameen Par was a box-office superhit. Plus, they have a strong presence in film exhibition and this integrated model is attracting private equity investors,” a media analyst said.
The last time PVR Ltd raised funds - about Rs 120 crore - was through an IPO in 2005. The money was then used for scaling up PVR’s film exhibition business - PVR Cinemas - with 82 additional screens.
Nitin Sood, chief financial officer, PVR Ltd, said this time around, the private equity investment will be deployed for ramping up the film production business. “We plan to increase our output next year to 8-10 films, up from 4-5 films this year,” he said.
PVR Pictures has till now entered into co-productions with Aamir Khan (Taare Zameen Par, Jaane Tu Ya Jaane Na) and Ramgopal Varma (Contract).
c_arcopol@dnaindia.net
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