PVR INOX to sell 4700BC to Marico in Rs 226.8 cr all-cash deal

Multiplex operator PVR INOX on Monday said it will divest its premium snacking business under the 4700BC brand to FMCG major Marico Ltd in an all-cash transaction valued at Rs226.8 crore, a move aimed at reducing debt and sharpening focus on its core cinema operations.

PVR INOX expects this deal to "be completed within 30 days from the date of definitive agreements," following which the leading film exhibitor will become a "negligible debt" company, its CFO Gaurav Sharma told media.

The company's board has approved the sale of its 93.27 per cent stake in Zea Maize Pvt Ltd (ZMPL), which owns the 4700BC brand, according to a regulatory filing.

"This exit is in line with our strategy of strengthening the balance sheet by monetising assets or mature investments and improving capital efficiency," he said. Created after the merger of PVR and INOX in February 2023, the company has been pivoting towards an asset-light model over the past three years, with a focus on reducing capex intensity and debt levels.

"So post this divestment, the proceeds will be used towards further reducing the debt and redeploying the capital in our core business. We will be a negligible net debt company after this transaction is completed," he said.