DLF in talks with PVR, others to sell DT Cinemas
Realty major DLF plans to sell ‘DT Cinemas’ and is in talks with potential buyers including PVR Ltd, as part of its strategy to exit non-core businesses and cut <g data-gr-id="39">huge</g> debt of over Rs 20,000 crore. According to sources, DLF is looking to exit from the DT Cinemas business and is in discussions with a couple of multiplex operators including PVR.
When contacted, DLF spokesperson said: “We do not comment on market speculations”. “PVR is in talks with DLF to acquire its multiplex business,” said a source. However, the company declined to comment on the issue. Meanwhile, the BSE has sought clarification from both DLF Ltd and PVR Ltd about media report that PVR is close to acquiring DT Cinemas. In November 2009 as well, DLF had signed an agreement with PVR to sell DT Cinemas, but <g data-gr-id="29">deal</g> fell through in February 2010.
DT Cinemas, the wholly owned subsidiary of the DLF, has 29 screens with a seating capacity of more than <g data-gr-id="25">6,200,</g> while PVR Cinemas has 471 screens in 106 properties in 44 cities. In the last 4-5 years, DLF, the country’s largest real estate firm, has been selling off non-core assets including land parcels to focus on the core real estate business and cut debt which stood at Rs 20,336 crore as on December 31, 2014. In February last year, DLF had sold its luxury hospitality chain Amanresorts to its original founder Adrian Zecha for $358 million (Rs 2,200 crore).
DLF completed <g data-gr-id="27">sale</g> of its 74 <g data-gr-id="28">per cent</g> stake in the joint venture DLF Pramerica Life Insurance to Dewan Housing Finance for an estimated Rs 250 crore in December 2013. The company has also exited from wind energy business. That apart, DLF sold 17 acres of prime land in Mumbai to Lodha Developers for about Rs 2,700 crore in August 2012. DLF has a land bank of about 300 million sq ft, of which around 50 million sq ft is under construction.
Meanwhile, DLF reported 22 per cent decline in its consolidated net profit at Rs 171.62 crore for the quarter ended March 2015 mainly due to higher tax expenses and fall in other income. Its net profit stood at Rs 219.68 crore in the year-ago period, DLF said in a statement.