PVR sells bluO to market leader SMAAASH
PVR Ltd, India’s largest multiplex company today announced that it has entered into Definitive agreements with Smaaash Entertainment Private Limited (“SMAAASH”) to sell its stake in bluO entertainment, a premium bowling and entertainment format operated by the Company. As part of its national expansion plans, Smaaash Entertainment Private Limited (“SMAAASH”), India's acclaimed world class gaming and entertainment company, has acquired 100% stake in bluO entertainment (a premium bowling and entertainment format), through a cash acquisition deal.
bluO is a joint venture between PVR Limited and Major Cineplex Group of Thailand in which PVR owns 51% stake with balance 49% stake held by Major Group. The acquisition marks the doubling of the area under SMAAASH management from 276,000 square feet to approximately around 600,000 square feet in India.
The significant acquisition also adds six centers (approximately 210,000 sq. ft. of premium space) across five cities to SMAAASH’s existing blueprint of seven centers in India and one in Minneapolis in the United States. The newly acquired centres will operate under SMAAASH branding and two more centers are expected to open shortly! SMAAASH will introduce its signature games at all bluO centres, which only had bowling before.
Commenting on the deal Mr. Ajay Bijli, Chairman cum Managing Director, PVR Ltd., said, “The sale of bluO is in line with our strategy to divest all non-core assets and focus on our core Cinema Exhibition business. It is also reflective of the value embedded in our core assets and demonstrates our commitment to increase shareholder value and provide management a more focused approach for enhancing value in exhibition business. We are pleased to sell the business to SMAAASH, which is a leader in retail and entertainment space in India and the US; and believe that they will take the business to even greater heights.”
Commenting on the deal, Mr. Shripal Morakhia, Chairman & Chief Imagination Officer, Smaaash Entertainment Private Limited, said, “The strategic acquisition of BluO is a significant step in doubling SMAAASH’s scale and outreach in India’s fast growing retail entertainment space. The synergies between both brands are deeply symbiotic in creating a network of centers in key cities that are designed as destinations with a relentless focus on wholesome sports, active life, and adventure for urban citizens. We are sure that bluO’s premium locations, infrastructure and F&B offerings, coupled with SMAAASH’s leadership in innovation with new technology and virtual reality, will fill a much-needed gap for experiential entertainment in our country. We are committed to enhancing profitability and revenue per centre while being the custodian of customer smiles in these centres.”
The acquisition comes on the heels of SMAAASH’s recent international success story in the Mall of America, Minneapolis, United States.
EY acted as the exclusive financial advisor to the shareholders of PVR bluO for the transaction.