INOX set to acquire Delhi based Satyam Cineplex!

Multiplex operator Inox Leisure Ltd is set to acquire Delhi / Gurgaon-based rival Satyam Cineplexes. It is learnt that the acquisition of 100% equity share capital of Satyam from its current stakeholder is at a consideration of whopping Rs. 182 crore.

This deal is said to provide INOX a significant foothold in the North India region as Satyam Cineplex has a strong presence in markets like Amritsar, Mysore, Rohtak, Aurangabad, Jodhpur, Indore and New Delhi with a total of 38 screens now, while another 30 are in the pipeline in six cities. However, the Chachra family – owners of the Cineplex chain will continue to own the three sites in Delhi — Nehru Place, Janakpuri, Patel Nagar — but will lease them to Inox for operations.

Interestingly, this would be INOX’s third acquisition in less than eight years. Back in 2007, the company acquired Calcutta Cine Pvt Ltd. which set off, in large way, the consolidation phase in the multiplex industry in India. In 2010, the company went on to acquire Fame India Ltd. With this acquisition, Inox will expand its presence to 50 cities with 91 multiplexes and 358 screens.

In a statement given to the media, Deepak Asher, Director, Inox Group of Companies, said, “It has been our strategy to expand our multiplex business both organically and inorganically over the years. With this acquisition, we will strengthen our position further in the industry as well as in the country, especially North India.” He said the company would take advantage of its reach to become a one-stop platform to the complete value chain of film producers and distributors, right to the end consumer. “Over the next few months, we will evaluate the full benefits of integration and consolidation, to drive competitive advantage across the value chain, and consider our strategic options in accordance with regulatory guidelines,” he added.

Satyam Cineplexes MD Deven Chachra in his statement said, “Our partnership with the Inox family will continue in the form of a long-term lease in respect of the three Delhi sites.”