Adlabs Films enters into an agreement with Rave Entertainment

Adlabs Films Ltd has informed BSE that on May 02, 2007 the Company has entered into an agreement with Rave Entertainment to acquire the right to conduct cinema exhibition business at one operational multiplex in Kanpur and six more projects under implementation in NCR, Uttar Pradesh, Punjab and Haryana totaling 23 screens. This acquisition by itself would contribute to an increase in the Company's multiplex presence by five properties (17 screens) within the next four months.

Rave Entertainment Pvt. Ltd., (Rave) owns and operates the popular brand 'Rave Cinemas' at Kanpur and has entered into license arrangements for operating cinemas at prominent retail locations in Noida and other centers in UP, Punjab and Haryana. Five of the seven properties are also entitled to entertainment tax exemptions. The license terms between the Company and the promoters of Rave are subject to confidentiality provisions.

This licence provides the Company quick access to the Delhi-UP territory, which contributes a sizeable 23% to the all-India box-office. The Company's current screens stand at 62 and are set to increase substantially during the coming year.

Commenting on the arrangement, Manmohan Shetty, Chairman and Managing Director - of the Company said, "Rave's properties are well managed and the projects under implementation are in carefully chosen strategic locations. Coupled with our own aggressive growth path, we are well on our way to becoming the market leader by July 2007. By end of March 2008, we will have a presence in 70 cities, spread over all significant film territories that contribute over 80% to the domestic box-office collections."

The aforesaid transaction which, inter alia, involves demerger of certain businesses and obtaining of rights to operate properties is expected to take upto 6 months. With this itself, the Company will increase its multiplex presence in North India by seven properties (23 screens).

Source : Bseindia.com