Everstone Capital calls off deal to buy Fun Republic

MUMBAI: Private equity fund Everstone Capital's has called off plans to buy media baron Subhash Chandra's mall operator Fun Republic as they couldn't agree on valuation or the deal structure, three people with direct knowledge of the development said.

The two sides had initially begun talks for a 30% stake and then progressed to an outright purchase as Everstone, which owns malls, also plans to operate them, having hired a senior executive from PVR.

"The deal has been called off," said one of the persons above who's directly involved with the deal. "There was no matching of minds when it came to deal structure and valuations."

Atul Goel, MD and CEO of E-city Ventures, the holding company for all the entertainment businesses of Chandra's Essel Group, did not respond to an emailed questionnaire. E-city runs the Fun Cinemas and Fun Republic chain of multiplexes. Everstone Capital declined to comment.

Started in 2000, Fun Republic was the first mall in Mumbai to offer entertainment, shopping and fine dining at a single point.