Lagatar24 Desk
New Delhi, March 27: The boards of directors of PVR Limited (PVR) and INOX Leisure Limited (INOX) authorized an all-stock merger of INOX and PVR, to their respective meetings on Sunday.
The merger is subject to shareholder approval, stock exchange permission, market regulator Sebi approval, and any other regulatory approvals that may be required. The merger will become effective after all of the necessary approvals have been obtained, and INOX will merge with PVR.
PVR and INOX announce their merger. pic.twitter.com/Z24VZogJi8
— ANI (@ANI) March 27, 2022
INOX shareholders will get PVR shares in exchange for INX shares at the approved share exchange (swap) ratio. Following the merger, INOX promoters will join the existing PVR promoters as co-promoters of the amalgamated firm.
PVR INOX Limited will be the combined entity’s name, with existing screens continuing to be branded as PVR and INOX, respectively. PVR INOX will be the name of the new theatres that open as a result of the merger.
Ajay Bijli will take over as managing director, while Sanjeev Kumar will take over as executive director. In the amalgamated entity, Siddharth Jain will be appointed as a non-executive, non-independent director.
The amalgamated company’s Board of Directors will be reconstituted, with a total board strength of ten members and equal representation on the Board for both promoter families, with two board seats each.
PVR Promoters will own 10.62 percent of the combined business after the merger, while INOX Promoters would own 16.66 percent.
Notably, PVR now operates 871 screens across 181 locations in 73 cities, while INOX operates 675 screens across 160 properties in 72 cities, bringing the combined entity to 1,546 screens across 341 properties in 109 cities, making it India’s largest cinema exhibition firm.
