The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have approved the merger of multiplex chain PVR and Inox Leisure. According to their separate exchange filings, PVR and Inox Leisure received observation letters from the BSE on June 20 and 21 with “no unfavourable observations” and “no objection,” respectively. According to the documents, the Competition Commission of India must provide the necessary regulatory licences before the merging plan can forward (CCI).
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- In March of this year, the boards of directors of PVR and INOX authorized the merger of the two multiplex companies. If the merger goes through, Ajay Bijli will take over as managing director and Pavan Kumar Jain would be named non-executive chairman of the board.
- In the amalgamated entity, Siddharth Jain will be appointed as a non-executive non-independent director in addition to Sanjeev Kumar’s appointment as executive director.
- The proposed merger would be in the best interest of the transferee business, the transferor firm, and each of their respective shareholders, workers, creditors, and other stakeholders, according to PVR’s exchange filing.
- It also stated that greater size, technological advancements, and extended reach will benefit lenders, workers, customers, and shareholders by increasing prospects for growth, increasing cross-selling opportunities to a broader client base, and increasing productivity, among other things.
About the Merger:
- Following the merger, INOX promoters will own 16.66% of the combined firm, while PVR promoters will own 10.62%. Promoter families will have equal participation on the board with two seats each, and the board of directors of the combined firm will be reconstituted with a total of 10 members.
- Three PVR shares will be exchanged for ten INOX shares under the share exchange ratio.
- The merged firm would run 1,546 screens over 341 buildings in 109 cities, making it the largest movie theatre chain in India. At the moment, PVR runs 871 screens 181 properties in 73 cities, whereas INOX runs 675 screens 160 properties in 72 cities.
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