Will leading multiplex player PVR be second time lucky? PVR is taking another stab at acquiring DT Cinemas after failing to do so in its earlier attempt in 2009.

PVR has agreed to acquire the cinema exhibition business of DLF Utilities, which operates under the DT Cinemas brand.

It proposes to buy DT Cinemas on a slump sale basis — where the buyer does not assign a specific value to individual assets and liabilities — for ₹500 crore.

Saurabh Chawla, Senior Executive Director, DLF Ltd, said: “The deal is in line with our strategy to focus on our core business and divest non-core businesses.

“It is also reflective of the value embedded in our core assets and demonstrates our commitment to increase shareholder value. It shall provide the management a more focussed approach for enhancing value, especially in our retail mall business.”

Currently, DT Cinemas operates 29 screens across eight properties in NCR and Chandigarh with plans to add 10 screens in the NCR. This acquisition will increase PVR Cinemas’ screen-count to 506 screens across 115 multiplexes in 44 cities.

Ajay Bijli, Chairman and Managing Director, PVR, said: “We are committed to grow our film exhibition business both organically and inorganically.” .

Shardul Amarchand Mangaldas & Co was the legal adviser to PVR, and EY India and Luthra & Luthra were financial and legal advisors, respectively, to DLF.

Jehil Thakkar, Partner and Head of Media & Entertainment, KPMG in India, said the multiplex industry has been seeing consolidation and this is expected to continue.

Rising net debt Debt-ridden DLF has been offloading its non-core businesses in the past few years.

Despite selling it wind energy business, divesting stake in Aman Resorts and selling the information technology special economic zone in Pune, the company's net debt increased by ₹628 crore between September and March 2015 to ₹20,965 crore as on March 31, 2015.