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Multiplex giants PVR and Inox on Sunday announced the merger of the two companies in what could be seen one of the biggest business amalgamations 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.
The merger will happen in a share exchange (swap) ratio wherein three equity shares of PVR will be swapped for 10 equity shares of Inox.
The process, however, is “subject to approval” of the shareholders of Inox and PVR, Securities and Exchange Board of India (Sebi), stock exchanges, and “other regulatory approvals as may be required,” the statement added.
The combined entity – once the merger is complete, will be known as PVR Inox Limited. Screens that are already existent under the ambit of respective companies will continue as PVR and Inox. However, those opened post the merger, will operate under the combined name.
Ajay Bijli will be appointed as the managing director of the combined PVR Inox firm, while Sanjeev Kumar will be the executive director. Pavan Kumar Jain would be appointed as the non-executive chairman of the consolidated board.
According to the statement, once the merger is complete, Inox promoters will become co-promoters in the combined entity along with their counterparts of PVR. Furthermore, the board will be reconstituted with an overall strength of 10 members. Both Inox and PVR will have equal representation on the board with two sets each.
Inox will have 16.66 per cent stake at the combined entity while PVR will have 10.62 per cent stake.
“The combined entity will become the largest film exhibition company in India operating 1,546 screens across 341 properties across 109 cities,” the statement read.
The merger comes amid the ongoing Covid-19 pandemic during which most theatres remained shut.
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