PVR's Aborted Acquisition of DLF's DT Cinemas

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Case Details:

Case Code : BSTR372
Case Length : 15 Pages
Period : 2009 - 2010
Pub Date : 2010
Teaching Note :Not Available
Organization : PVR Ltd / DLF's DT Cinemas
Industry : Media and Entertainment
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"The acquisition of DT Cinemas and long-term strategic partnership with the DLF Group is part of our expansion strategy. PVR will now control 60-70 per cent of the market share in Delhi and Gurgaon market."¹

- Ajay Bijli, Chairman and Managing Director, PVR Ltd., in November 2009.

"PVR is the leading multiplex brand with a proven track record and established leadership credentials. The partnership with PVR allows us to focus on our core business of real estate while ensuring the highest quality of entertainment being offered to the retail customers is commensurate with DLF's standards."²

- Pia Singh, Director, DT Cinema Ltd., in November 2009.

"It is a clear example that the industry will have to consolidate and it is good because there will now be only a few serious players in the game."³

- Vishal Kapur, Chief Operating Officer, Fun Cinemas⁴, in November 2009.

"Multiplex chain operator PVR Ltd has terminated its agreement to acquire the cinema exhibition business of DT Cinemas Ltd, a DLF Group company. PVR said that both parties mutually agreed not to extend the period for completion of the pact. PVR said the agreement was cancelled as the "condition for acquisition" has not been met by DT Cinemas."⁵

- The Hindu Business Line, February 15, 2010.

"The deal would've have made PVR a formidable force in the multiplex space in India, especially in the north." ⁶

- Nikhil Vora, Managing Director, IDFC-SSKI Securities Ltd.⁷, in February 2010.

PVR's Aborted Acquisition of DLF's DT Cinemas - Next Page>>

1] "PVR Acquires DLF's DT Cinemas," www.thehindubusinessline.com, November 14, 2009.
2] "DLF Sells DT Cinemas, Enters into a Long Term Strategic Alliance with PVR," www.dlf.in, November 13, 2009.
3] "DLF Sells Multiplex Chain to PVR," www.business-standard.com, November 14, 2009.
4] Operated by Fun Multiplex Pvt. Ltd., Fun Cinemas was a leading multiplex brand in India. It was owned by Essel Group, a diversified business conglomerate. Source: www.funcinemas.com.
5] http://www.thehindubusinessline.com/2010/02/16/stories/2010021652690200.htm.
6] Ishita Russell, "PVR Calls off DT Cinemas Buy as Deadline Expires," www.livemint.com, February 15, 2010.
7] Headquartered at Mumbai, it was a financial services firm that offered institutional equities and investment banking services. Source: www.idfcsski.com (Accessed on March 7, 2010).

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