PVR Denies Stake Sale to China’s Dalian Wanda Group; Stock Soars to 52-week High

Mumbai: World’s largest movie theatre chain $40-bn Wanda Cinema is believed to have resumed talks with PVR Cinemas. According to latest media reports, China’s richest man, Wang Jianlin has revived talks with Ajay Bijli, the promoter of PVR Ltd, to buy a controlling stake in India’s largest multiplex operator.

However, PVR group denied any such proposal. PVR spokesperson said the news was incorrect and said: “We would like to inform you that the trailing news is completely false and erroneous.”

Meanwhile, shares of multiplex chain PVR on BSE skyrocketed as high as eight per cent to hit a 52-week high on Friday after the reports that Dalian Wanda Group has evinced interest in picking up stake in the company. The PVR stock, which closed at Rs. 1,183.15 on Thursday, gained 8.20 per cent to hit a 52-week high of Rs. 1,280.20, but later closed at Rs. 1,272.45. The stock’s 52-week low is Rs. 646.

Meanwhile, shares of multiplex chain PVR on BSE skyrocketed as high as eight per cent to hit a 52-week high on Friday after the reports that Dalian Wanda Group has evinced interest in picking up stake in the company. The PVR stock, which closed at Rs. 1,183.15 on Thursday, gained 8.20 per cent to hit a 52-week high of Rs. 1,280.20, but later closed at Rs. 1,272.45. The stock’s 52-week low is Rs. 646.

The reports spread in the market also reveal that Dalian Wanda Group has started due diligence on PVR’s books as a prelude to make a formal offer to acquire the company.

Of late, Dalian Wanda Group is in expansion mode and it has already made a bid for Paramount Cinemas in the US. Wanda is planning to invest $10 billion in India over 10 years. A blockbuster buyout is in the works in India’s premier movie theatre company.

Established in 1978, PVR has 553 screens in 47 cities from a humble beginning with a single cine hall in South Delhi. It’s estimated that 10,000 screens are operational in India and multiplex operators control 25 percent cumulative share.