J Sagar Associates (JSA) and Luthra & Luthra co-ordinated the Rs 62.2 crore ($13.5m) cash and equity acquisition of DLF-owned DT Cinemas chain by entertainment chain PVR.
JSA founding partner Jyoti Sagar and Gurgaon partner Divyanshu Pandey advised PVR, which the firm has acted for in the past on several of its deals.
Luthra & Luthra Delhi corporate partner Samir Dudhoria and senior associate Aparna Mittal led the team for DT Cinemas.
Luthra & Luthra has had a long-standing relationship in real estate with DT Cinemas' parent company and mall developer DLF.
Dudhoria said that the firm had done around 10 to 15 transactions with DLF, including closing joint ventures with many of the retailers in its malls.
PVR paid Rs 20.2 crores in cash to DT Cinemas, which in turn acquired a 10 per cent stake in PVR.
Dudhoria said that the more challenging part of the transaction, however, was not just the acquisition: "It was not just a buy out of the business but also strategic alliance, a continuing relationship.
"Any future development that has a multiplex space, PVR has the first right to manage that space. It is an alliance on a pan-India basis."
Pandey, who joined JSA six months ago from Freshfields Bruckhaus Deringer in London, agreed since many of acquired cinemas were not yet operational. "The cooperation element [for future mall space] had a bit of complex real estate issues on how best to document it and to make it a binding arrangement."
Dudhoria noted that there were good synergies between the groups and the deal would enable DLF to move out of the areas such as the cinema business that were not core, meanwhile still maintaining the ability to have a cinema in every mall.
JSA, Luthra close cinema, mall slump-sale-JV
Photo by: Looking Glass
By reading the comments you agree that they are the (often anonymous) personal views and opinions of readers, which may be biased and unreliable, and for which Legally India therefore has no liability. If you believe a comment is inappropriate, please click 'Report to LI' below the comment and we will review it as soon as practicable.
threads most popular
thread most upvoted
comment newest
first oldest
first
Would anyone know who advised on the Tata Sikorsky joint venture?
The above statement which I quoted cannot be the position. Section 77 of the Companies Act, 1956 states that the company cannot fund directly o indirectly for the purchase of its own securities.
[Please do not write in text speak - we will not post up future comments that are not spelled out in full, sorry. -Ed]
Those are great numbers, isn't it?
I'm happy for them, and happy to think that there are people who still take the risk in building businesses, companies, and investments.
Hope that this business will go further beyond and progress, unlike others which they think that the best way to save it is to do the "Business For Sale Strategy".
I'm happy for them for their new business.
At the same time, I'm happy to see that there are still people who take the risk in the business world though we all know that it is not sure that it will progress and evolve.
Hope that this business won't end up just like other small companies that instead of enduring the circumstances, they rather chose to do Business For Sale Strategy thinking that they would at least profit a little instead of losing it without gaining any financial get-backs.
threads most popular
thread most upvoted
comment newest
first oldest
first