PVR, Inox Leisure ink all-stock merger deal

Mumbai: Cinema theatre owners PVR and Inox Leisure on Sunday announced merger of their businesses to create the largest multiplex chain in the country with a network of more than 1,500 screens in 109 cities. After the merger, PVR promoters will hold 10.62 per cent stake in the combined entity and Inox promoters, 16.66 per cent stake.

"The combined entity will be named as PVR Inox Limited with branding of existing screens to continue as PVR and Inox respectively, new cinemas opened post the merger will be branded as PVR Inox," said a joint press release issued by the companies.

A share exchange ratio of three shares of PVR for 10 shares of Inox was also announced, the release said.

The boards of PVR and Inox Leisure have approved an all-stock amalgamation of Inox with PVR. The amalgamation is subject to shareholders’ and other regulatory approvals.

"Upon obtaining all approvals, when the merger becomes effective, Inox will merge with PVR. Shareholders of Inox will receive shares of PVR in exchange of shares in Inox at the approved share exchange ('swap') ratio," the companies informed the stock exchanges.

Post the merger, the promoters of Inox will become co-promoters in the merged entity. Later the board of the merged company would be re-constituted with a total board strength of 10 members, with both the promoter families having two board seats each.

Ajay Bijli would be appointed as the managing director and Sanjeev Kumar would be appointed as the executive director of the merged entity.   Inox's Pavan Kumar Jain will be appointed as the non-executive chairman of the board and Siddharth Jain would be appointed as non-executive independent director.

"With PVR currently operating 871 screens across 181 properties in 73 cities and Inox operating 675 screens across 160 properties in 72 cities, the combined entity will become the largest film exhibition company in India operating 1,546 screens across 341 properties across 109 cities," the release said.

Ajay Bijli, chairman and MD of PVR, said, "The film exhibition sector has been one of the worst impacted sectors on account of the pandemic and creating scale to achieve efficiencies is critical for the long-term survival of the business and fight the onslaught of digital OTT platforms."