PVR Limited and Inox Leisure Ltd announced their intention to merge on Sunday, creating India’s largest multiplex chain with over 1,500 screens. The boards of directors of both film exhibition companies have approved an all-stock merger of Inox and PVR.
The merged entity will be known as PVR Inox Ltd, with existing screens continuing to be branded as PVR and Inox. PVR Inox will be the name of new cinemas that open after the merger, the two companies said in separate regulatory filings.
INOX Leisure Limited and PVR Limited Announce Merger
Merger to bring together two of India’s best cinema brands to deliver an unparalleled consumer experience with a network of more than 1500 screens #PressRelease @_PVRCinemas pic.twitter.com/H0LCm6T7MJ
— INOX Leisure Ltd. (@INOXMovies) March 27, 2022
According to the terms of the agreement, Inox will merge with PVR in a share swap ratio of three PVR shares for every ten Inox shares. “The amalgamation is subject to approval by the shareholders of PVR and INOX, respectively, stock exchanges, SEBI, and any other regulatory approvals that may be required,” according to the filing.
According to the press release, INOX’s Pavan Kumar Jain will be appointed as the new board’s non-executive chairman, and PVR’s Ajay Bijli will be the new entity’s managing director. The combined company will be known as PVR INOX Limited, but the branding and marketing will remain the same, as will the names of the theatres. Only new PVR INOX cinemas that open after the merger will be called PVR INOX.
Inox promoters will own 16.66 percent of the combined entity, while PVR promoters will own 10.62 percent.
The reconstituted board will consist of ten members. With two sets each, Inox and PVR will have an equal representation on the board.
“The combined entity will become India’s largest film exhibition company, operating 1,546 screens across 341 properties in 109 cities,” according to the statement.
The merger comes as theatres across the country reopen after being closed for months due to the Covid-19 pandemic.
