Multiplex cinema owner Carnival Cinemas has signed an agreement to acquire Big Cinemas, the multiplex business division of Reliance Mediaworks, for ₹7 billion (US$110 million). The transaction will give Carnival more than 300 screens across India, making it the third largest multiplex operator in the country behind PVR and INOX Leisure.
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Carnival Films is part of the Mumbai-based Carnival Group, which operates diverse businesses in the hospitality, media, real estate, and entertainment sectors. Carnival Films operates cinema chains under the brand Carnival Cinemas, in Kerala, Karnataka, Tamil Nadu, Maharashtra, Madhya Pradesh, Uttar Pradesh and West Bengal.
Reliance MediaWorks, part of financial services company Reliance Capital, owns 250 screens in India. The sale of Big Cinemas is consistent with Reliance Capital’s strategy to focus on its core financial services business and reduce overall leverage.
Reliance Capital will retain the option to acquire a pre-IPO minority stake in Carnival Cinemas at a discount, when the company eventually decides to pursue a listing.
Rukshad Davar, a partner at Majmudar & Partners, led the team which advised Carnival on the purchase.
J Sagar Associates advised Reliance MediaWorks on the deal. The team comprised partners Akshay Chudasama, Jay Gandhi and Gaurav Singhi and associates Neety Thakkar, Soumya Shankar and Meghna Nachappa.
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