L Capital Asia exits India's PVR Leisure via share buyback

The consumer sector-focused GP - which is sponsored by luxury goods conglomerate LVMH - acquired its stake in PVR Leisure via a INR1.1 billion (then $19.4 million) deal in August 2012.

AVCJ Research's records show that L Capital, through its subsidiary L Capital Echo, acquired a 10% stake in PVR for INR577 million; the remaining INR501 million gave the firm a 44% stake in PVR Leisure, a joint venture set up alongside PVR to focus on in-mall entertainment, gaming, food and leisure. PVR held a 51% stake in the JV with the remainder distributed via management stock options.

The investment also gave L Capital in an indirect stake in PVR Leisure-controlled bowling-alley business PVR BluO Entertainment, a JV set up in 2009 with Thailand's Major Cineplex. L Capital later supported PVR in its acquisition of domestic rival Cinemax India INR5.43 billion in November 2012. The PE firm retains 15.09% stake in PVR.

Established in 1995, PVR operates 462 screens at 104 locations across 44 cities. For the three-month period ended December 2014 the company reported revenue of INR398 million and a net profit of INR31 million versus INR224 million and INR13 million, respectively, for the same period the previous year.

This is L Capital's first India exit. The GP previously invested in ethnic apparel brand Fabindia in 2012, and retailer Genesis Luxury Fashion in 2011. Earlier this month the GP revealed that is was looking to invest up to $150 million in India this year as it looks to targets opportunities in the country's fast growing e-commerce sector.

Last week the L Capital made its first Middle East investment with the acquisition of a minority stake in Bateel, a luxury confectioner based in Saudi Arabia which has operations in India.

 

 

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• Topics
• South Asia
• Exits
• Consumer
• Expansion
• India
• Exit
• Consumer
• L Capital Asia
• Growth capital
• Buyback