PVR-DLF cinema biz buyout deal unravels

Multiplex operator PVR and real estate major DLF have decided to end the deal involving the sale of the cinema exhibition business of DT Cinemas Ltd, a DLF group firm.Sources said the deal has been called off as DLF could not meet the terms of the deal. They, however, added that the parties may reconsider the deal if the market improves.DLF officials confirmed to DNA Money the development but declined to provide further information on the issue. DLF’s share price has fallen in the last few weeks since the companies announced the deal last November, while the PVR stock has climbed.DLF had on November 13 sold the cinema business of DT Cinemas to PVR for Rs 22 crore in cash and 2.56 million equity shares of PVR (or 10% stake on a fully diluted basis).However, the issue of shares was deferred as DT Cinemas did not comply with certain issues needed to complete the deal, PVR said in a statement to the BSE. The companies had agreed to extend the time for meeting the conditions up to February. 15, but have now agreed to terminate the deal, PVR added.PVR would have been the exclusive multiplex anchor tenant for all existing and future retail malls of the developer, had the deal seen the light of the day.DT Cinemas has a portfolio of 29 screens, of which 26 screens are currently operational in various DLF malls in north India.DLF owns and operates up-market malls in North India under the brand name DLF Place, Emporio and City Centre. DLF had earlier said that, to monetise assets, it will sell its wind power business for Rs 900 crore and exit Delhi convention centre for Rs 850 crore.Last week, rival theatre owner Inox Leisure Ltd made an open offer to acquire an additional 20% stake in smaller operator Fame India, after it bought 50.48 percent of the latter for Rs 79.25 crore.