PVR Cinemas: Showdown On The Silver Screen.
As the sun threw its rays across the early morning sky, the board of directors of PVR Ltd. was in a closed – doors meeting at the company’s Gurgaon headquarters. Over the past few months, rumours had been doing the rounds of the markets that the Anil Dhirubhai Ambani Group’s (ADAG) subsidiary company, Reliance MediaWorks was looking to offload a controlling stake in its multiplex operator, Big Cinemas. Big Cinemas, however, was a loss – making company and its acquirer would have to turn it around for the acquisition to be value – accretive. Wild speculation had surrounded the entire episode but in September 2014, some clarity emerged when ADAG invited bids for Big Cinemas. PVR, hungry for growth and expansion, had thrown its hat into the ring, along with some other biggies such as INOX Leisure, Carnival Films, Provident Equity Partners (a US – based private equity firm) and Navis Capital (a Malaysian private equity fund). Two days ago, PVR’s board had approved a $81
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