On Monday, Anil Ambani-led Reliance Capital, said it is selling its multiplex business to the hospitality-to-realty major Carnival Cinemas in a transaction that will reduce its overall debt by around Rs.700 crore.
The deal will also catapult Carnival Cinemas, which has more than 50 screens with plans for 75 more in the country in the next two months, as the third top multiplex player in the country, a statement by Reliance Capital said.
The Reliance Group, which has some 250 “Big Cinemas” screens across India under its entertainment arm Reliance MediaWorks, has the option to acquire a minority stakle in Carnival Cinemas at a discount, prior to an initial public offer by the company.
The deal excludes the real estate owned by Reliance MediaWorks at various locations and the group intends to leverage them separately to monetise them at an approximate value of Rs.200 crore, the statement added.
