NEW DELHI: India’s largest real estate firm DLF has sold its seven remaining cinema screens in Delhi—six in Saket and one in Greater Kailash 2—under its cinema exhibition business to Mexican movie theatre chain Cinepolis for Rs 63.67 crore.
The company had earlier sold 32 screens to PVR for Rs 433 crore after the Competition Commission of India gave its nod to the deal. The competition watchdog had, however, asked the firm to exclude seven screens from the transaction to deal with anti-competitive concerns.
DLF told the Bombay Stock Exchange on Friday that “DLF Utilities Ltd., (DUL), a subsidiary has completed a transaction today i.e.September 02, 2016 with Cinepolis India for sale and transfer of remaining seven screens pertaining to DT Cinemas (Saket-6 screens & Greater Kailash Part 2-1 screen) as a going concern on a slump sale basis for a consideration of Rs. 63.67 crore upon receipt of CCI approval.
“With the closure of this transaction, the Company will exit from the cinema exhibition business. This is in line with the Company’s strategy to focus on Company’s core business and divest non-core businesses or assets,” it added.
Initially, the deal was for all 39 screens of DT Cinemas across NCR and Chandigarh valued at Rs 500 crore. After the CCI scrutiny the deal size was cut down to Rs 433 crore for 32 screens. So far PVR has paid Rs 333 crore to DLF while the rest will come after completion of some milestones.
CCI had also asked PVR to offload some of its planned assets for the transaction to be approved. The firm agreed to let go of plans for two under-construction properties at Noida and Gurugram and also agreed not to expand in these two regions for the next three years.
DLF has been selling its non-core assets over the last few years to pare its debt that had reached up to Rs 23,000 crore. In 2013-14, it achieved non-core sales of Rs 5,930 crore by selling its wind energy business, insurance business and luxury hotel chain Amanresorts.
In 2012, it had sold a 17-acre land parcel in central Mumbai’s Lower Parel area for Rs 2,727 crore to Lodha Group. Its net debt at the end of June 2016 stood at Rs 22,487 crore, up by Rs 285 crore over the previous quarter.