- Boards of both multiplex chains approve an all-stock merger.
- Both companies are looking at opening 180-200 screens every year.
- Ajay Bijli would serve as managing director of the merged entity.
New Delhi: Multiplex giants PVR and Inox on Sunday announced the merger of their two companies in what may well be one of the biggest business deals of the year. “Merger to bring together two of India’s best cinema brands to deliver an unparalleled consumer experience with a network of more than 1,500 screens,” Inox said in a statement.
Shareholders of Inox will get PVR shares in a pre-approved ‘swap’ ratio of 3:10; this means three equity shares of PVR can be swapped for 10 of Inox. Inox will have a 16.66 per cent stake in the new firm and PVR will have a 10.62 per cent stake. The merger is subject to approval by shareholders of companies as well as the Securities and Exchange Board of India (Sebi), stock exchanges, and other regulatory approvals as required, the statement added.
Once the merger is complete, the company will be known as PVR Inox Limited. Screens that already exist as PVR or Inox will continue under those names but those opened post the merger will operate under the combined name, Inox said. The merger comes as theatres across the country re-open after spending months shut because of the Covid-19 pandemic.
Ajay Bijli will be the managing director of PVR Inox Limited. Sanjeev Kumar will be the executive director and Pavan Kumar Jain will be the non-executive chairman of the consolidated board. The reconstituted board will have 10 members. Both Inox and PVR will have equal representation on the board with two sets each. “The combined entity will become the largest film exhibition company in India operating 1,546 screens across 341 properties in 109 cities,” the statement read.