PVR Limited, Inox Leisure ink merger deal to create largest multiplex chain in India

Leading film exhibition players PVR Ltd and Inox Leisure Ltd on Sunday announced a merger deal to create the largest multiplex chain in the country with a network of over 1,500 screens.

The respective boards of directors of both the companies in their meetings held on Sunday have approved all stock amalgamation of INOX with PVR, the two companies said in separate regulatory filings.

The combined entity will be named PVR INOX Limited, with the existing screens branding to continue as PVR and INOX. The new cinema halls opened after the merger will be branded as PVR INOX.

As per the agreement, INOX will merge with PVR at a share swap ratio of 3 shares of PVR for every 10 shares of INOX.

“The amalgamation is subject to the approval of the shareholders of PVR and INOX respectively, stock exchanges, SEBI and such other regulatory approvals, as may be required.

“After the merger, the promoters of Inox along with the existing promoters of PVR will become co-promoters in the merged entity,” the filing said.

It added that PVR promoters will hold 10.62% stake, while INOX promoters will hold 16.66% in the combined entity.

When the merger becomes effective, the board of the merged company will be reconstituted with a total board strength of 10 members and the two promoter families will be made up of two seats each with equal representation on the board.

The merger will unlock significant complementarity and growth potential and provide attractive revenue and cost synergies, the statement said.

PVR’s Ajay Bijli will be appointed as managing director and Sanjeev Kumar as executive director of the merged entity.

While INOX’s Pawan Kumar Jain will be appointed as non-executive chairman of the board and Siddharth Jain will be appointed as non-executive non-independent director in the combined entity.

Ajay Bijli, CMD, PVR said: “The partnership of these two brands will put consumers at the center of their vision and provide them with an unparalleled movie watching experience. The film exhibition sector has been one of the worst-hit sectors due to the pandemic and Creating scale to achieve efficiencies is critical for the long-term survival of the business and fighting the onslaught of digital OTT platforms.

Siddharth Jain, Director, INOX Leisure, said: “As we head towards the revival of the industry in the midst of adversity, this pivotal partnership will drive increased productivity through scale, deeper penetration into new markets and multiple cost optimization opportunities, and will continue to delight cinema fans with world-class experiences and landmark innovation”. PVR currently operates 871 screens across 181 properties across 73 cities, while INOX operates 675 screens in 160 properties across 72 cities.

“The combined entity will become India’s largest film exhibition company operating 1,546 screens across 341 properties in 109 cities,” the filing said.

Stay Connected With Us On Social Media Platforms For Instant Updates Click Here To Connect With Us TeaveterAnd Facebook

Source link

Leave a Comment