E-Paper
Inox, PVR announce merger; combined entity to be called PVR Inox Ltd
Once the merger is complete, Inox will have 16.66 per cent stake at the combined entity while PVR will have 10.62 per cent stake. Ajay Bijli will be appointed as the managing director of the amalgamated PVR Inox Ltd company.
Multiplex giants PVR and Inox on Sunday announced the merger of their two companies in what may well be one the biggest business deals of the year. "Merger to bring together two of India's best cinema brands to deliver an unparalleled consumer experience with a network of more than 1,500 screens," Inox said in a statement.
Shareholders of Inox will get PVR shares in a pre-approved 'swap' ratio of 3:10; this means three equity shares of PVR can be swapped for 10 of Inox. Inox will have a 16.66 per cent stake in the new firm and PVR will have 10.62 per cent stake.
The merger is subject to approval by shareholders of both companies as well as the Securities and Exchange Board of India (Sebi), stock exchanges, and other regulatory approvals as required, the statement added.
Once the merger is complete, the company will be known as PVR Inox Limited. Screens that are already exist as PVR or Inox will continue under those names but those opened post the merger will operate under the combined name, Inox said.
Ajay Bijli will be managing director of PVR Inox Limited. Sanjeev Kumar will be executive director and Pavan Kumar Jain will be non-executive chairman of the consolidated board.
The reconstituted board will have 10 members. Both Inox and PVR will have equal representation on the board with two sets each.
"The combined entity will become the largest film exhibition company in India operating 1,546 screens across 341 properties in 109 cities," the statement read.
The merger comes as theatres across the country re-open after spending months shut because of the Covid-19 pandemic.
