PVR, Major Cineplex to sell bluO to Smaaash
PVR is exiting its 51% stake in the bowling and entertainment format operated under the brand bluO. Its joint venture partner Major Cineplex Group of Thailand will also divest its 49% in bluO giving 100% control to Smaaash Entertainment Pvt Ltd (Smaaash), which is acquiring bluO inment in an all cash deal.
While financial details of this transaction were not disclosed, the multiplex chain operator has already entered into definitive agreements with Smaaash for this takeover. Once concluded, Smaaash will double the area under its management from 276,000 square feet to approximately around 600,000 square feet in India.
Ajay Bijli, chairman and managing director, PVR Ltd, said the sale of bluO is in line with the company's strategy to divest all non-core assets and focus on core cinema exhibition business. “It is also reflective of the value embedded in our core assets and demonstrates our commitment to increase shareholder value and provide management a more focused approach for enhancing value in exhibition business,” Bijli said in a statement.
A leader in retail and entertainment space in India and the US, Smaaash will add, with this acquisition, six centres (approximately 210,000 sq ft of premium space) across five cities to its existing blueprint of seven centres in India and one in Minneapolis in the United States. The newly acquired centres will operate under Smaaash branding and two more centres are expected to open shortly. Smaaash will introduce its signature games at all bluO centres, which only had bowling before.
The strategic acquisition of BluO, said Shripal Morakhia, chairman and chief imagination officer, Smaaash Entertainment Pvt Ltd, is a significant step in doubling Smaaash’s scale and outreach in India’s fast growing retail entertainment space. “The synergies between both brands are deeply symbiotic in creating a network of centers in key cities that are designed as destinations with a relentless focus on wholesome sports, active life, and adventure for urban citizens.
“We are sure that bluO’s premium locations, infrastructure and food and beverage offerings, coupled with Smaaash's leadership in innovation with new technology and virtual reality, will fill a much-needed gap for experiential entertainment in our country,” said Morakhia adding that the company is committed to enhancing profitability and revenue per centre.