Reliance Capital to sell multiplex biz to Carnival for Rs. 700 crore.

Reliance Capital has agreed to sell the multiplex business of Reliance MediaWorks (RMW) to Carnival Cinemas for Rs. 700 crore, signalling further consolidation in the Indian cinema exhibition space.

The deal, touted to be the largest merger and acquisition transaction among multiplex operators, will make Carnival Cinemas the country’s third largest operator after PVR and Inox Leisure.

The deal excludes real estate owned by RMW at IMAX Wadala (Mumbai) and other properties, which will be separately monetised for about Rs. 200 crore, RMW said in a media statement.

'The proposed transaction is in furtherance of Reliance Capital's stated objective of focusing on its core financial services businesses, significantly reducing exposure to non-core investments in the media and entertainment sector, and reducing overall debt,' said Sam Ghosh, Chief Executive Officer of the Anil Ambani group company.

RMW currently operates a chain of 250 multiplexes under the 'Big Cinemas' brand.

HBL