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Inox acquires 100% stake in Satyam Cineplexes; To open 156 new screens

Multiplex chain operator Inox Leisure Ltd acquired 100% of the equity share capital of New Delhi-based Satyam Cineplexes Ltd from its existing shareholders for Rs.182 crore, Inox said in a filing to the BSE (pdf). Post this acquisition Inox’s screen count in the country has increased to 358, in 91 multiplexes across 50 cities, the statement added. In terms of multiplexes, Inox is second to PVR Cinemas, which has 444 screens in 101 multiplexes across 43 cities in India. More importantly, the Satyam Cineplexes acquisition gives Inox an entry into Delhi (and neighbouring Gurgaon, Greater Noida and Faridabad), which is dominated by PVR. Satyam’s three marquee properties in Delhi are in Nehru Place, Janak Place, and Patel Nagar. They also have multiplexes in Indore, Jodhpur, Aurangabad, Rohtak and Mysore, with a total of 38 screens. Inox Leisure CEO Alok Tandon told Business Standard that they will be adding a further 156 screens over the next two years. This will take their total screen count to 514. Apparently this year Inox will open new screens in Jamnagar, Kurnool, Faridabad and Jaipur. Post the acquisition Inox Leisures share price increased by 7.5% in intraday trading, as reported by MoneyControl.com. Inox’s earlier acquisitions This will be Inox’s third acquisition in 7 years. Inox acquired Fame Cinemas in 2010 after a lengthy takeover battle with Reliance MediaWorks’ Big Cinemas. In February 2010 Inox had acquired 43.28% in Shringar Cinemas Ltd, which operates Fame Cinemas, for Rs.66.48 crore. Reliance MediaWork’s Big Cinemas was also interested…

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