PVR cinemas gets fund backing
By Patrick Frater
Thu, 02 August 2012, 17:51 PM (HKT)
Indian multiplex operator PVR Cinemas is to sell a 10% stake to L Capital Asia, a private equity fund sponsored by LVMH, the French luxury goods manufacturer.
PVR will receive a cash injection of some $19.5 million for the shares. L Capital will invest a further $9.6 million in a new joint venture company that invests in businesses running entertainment, gaming, food and other leisure facilities in malls. PVR will contribute its bowling alley operation bluO Entertainment to the new JV.
PVR currently operates 179 screens across 24 cities in India, and is on course to open another 69 screens by the end of the current financial year.