Carnival Cinemas Acquires Multiplex Biz From Reliance Media Works

Reliance Media Works Ltd(RMW), part of Reliance Capital of Anil Ambani-led Reliance group, sell its multiplex business to Carnival Cinemas for Rs 710 crore. The deal excludes real estate owned by RMW at IMAX Wadala in Mumbai and other properties, which will be separately monetised for Rs.200 crore. This will be the largest ever deal in this sector in India till date.

By doing this, Reliance Capital’s debt can be reduced by Rs.700 crore through a combination of transfer of debt of RMW and an infusion of cash proceeds. With this transaction Carnival Cinemas will be in the top three multiplex operators in India with over 300 screens nationwide. Carnival Cinemas are also planning to achieve 1,000 screens by the year 2017.