The merged company will be called PVR Inox Limited, with existing screens continuing to be branded as PVR and Inox.
The merged company will be called PVR Inox Limited, with existing screens continuing to be branded as PVR and Inox.
Leading film exhibitions players PVR Limited and Inox Leisure Limited announced a merger agreement on Sunday to create the country’s largest multiplex chain with a network of more than 1,500 screens.
The respective boards of directors of the two companies approved a merger of all shares of Inox with PVR at their meetings held on Sunday, the two companies said in separate regulatory filings.
The merged company will be called PVR Inox Limited, with existing screens continuing to be branded as PVR and Inox. New cinemas opening after the merger will be branded as PVR Inox, she added.
Under the terms of the agreement, Inox will merge with PVR at a share exchange ratio of 3 shares of PVR for every 10 shares of Inox.
“The merger is subject to PVR and INOX shareholder approvals, stock exchanges, SEBI and other required regulatory approvals.
“After the merger, the promoters from INOX, along with the existing promoters from PVR, will become co-promoters in the merged entity,” the filing reads.
PVR promoters will have a 10.62% stake, while Inox promoters will have a 16.66% stake in the combined company, it added.
If the merger becomes effective, the board of the merged company would be reshuffled to a total of 10 members and both founding families would be equally represented with two seats each on the board.
The merger will unlock significant complementarity and growth potential and offer compelling revenue and cost synergies, the statement said.
PVR’s Ajay Bijli will become Managing Director and Sanjeev Kumar will become Executive Director of the combined company.
While Inox’s Pavan Kumar Jain will be appointed Non-Executive Chairman of the Board and Siddharth Jain will be Non-Executive Non-Independent Director of the combined company.
PVR CMD Ajay Bijli said: “The partnership of these two brands will put consumers at the center of their vision and offer them an unrivaled cinematic experience. The film exhibition sector has been one of the hardest hit sectors due to the pandemic, and creating scale to achieve efficiencies is critical to the long-term survival of the business and combating the onslaught of digital OTT platforms.”
Siddharth Jain, Director of Inox Leisure, said: “As we navigate the industry revival amid headwinds, this crucial partnership would result in increased productivity through scale, deeper reach into newer markets and numerous opportunities to optimize costs and keep cinema fans engaged World-class experiences and pioneering innovations”. PVR currently operates 871 screens in 181 properties in 73 cities, while Inox operates 675 screens in 160 properties in 72 cities.
“The combined company will become the largest film exhibition company in India, operating 1,546 screens in 341 buildings in 109 cities,” the filing states.
