After getting a green signal from CCI, Reliance MediaWorks, a part of Anil Ambani-led group, is ready to sell its multiplex business to South-India based Carnival Films. This transaction will reduce the debt of Reliance Capital by Rs 700 crore. This deal will make Carnival, the third largest multiplex operator with nationwide presence and over 300 screens in India.
As per the agreement executed on December 14, 2014, the film exhibition business of Reliance Media along with the food and beverages business which is a part of such film exhibition business would be transferred to Cinema Ventures Private Ltd (CVPL) - a subsidiary of Reliance Media.
Reliance Media has 88 cinemas (72 multiplexes and 16 single screen cinemas) and its 238 screens are proposed to be transferred to CVPL. Carnival will acquire 98 per cent stake in CVPL and the remaining 2 per cent stake will be acquired by the director of Carnival.
The selling deal between Reliance MediaWorks and Carnival Cinemas, will exclude IMAX Wadala (Mumbai) and some other properties worth Rs 200 crore.
Reliance Capital is the parent firm of Reliance MediaWorks, which operates one of the largest cinema chains, under the brand 'BIG Cinemas'.