Multiplex chain PVR Limited has announced a merger with INOX Leisure Limited on March 27, Sunday. PVR Chairman and Managing Director Ajay Bijli will be appointed as the Managing Director of the merged entity. Pavan Kumar Jain, current Chairman of the INOX Group, will be the Non-Executive Chairman of the Board, a press release announcing the merger said. The Board of Directors of PVR Limited and INOX Leisure Limited have approved an all stock amalgamation of INOX with PVR at their respective meetings held on March 27, it said.
The amalgamation is subject to approval of the shareholders of PVR and INOX respectively, stock exchanges, SEBI 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 release said. INOX shareholders will receive 3 shares in PVR for 10 shares of INOX, it said.
After the merger, PVR Promoters will have 10.62% stake while INOX Promoters will have 16.66% stake in the combined entity. The promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR. “Upon effectiveness of the scheme, the Board of Directors of the merged company would be re-constituted with total board strength of 10 members and both the promoter families having equal representation on the Board with 2 board seats each,” the statement said.
Ajay Bijli would be appointed as the Managing Director, and Sanjeev Kumar Bijli, who is Joint Managing Director at PVR Ltd currently, would be appointed as the Executive Director. Pavan Kumar Jain of INOX would be appointed as the Non- Executive Chairman of the Board. Siddharth Jain, who is currently the Director of INOX Leisure Ltd, would be appointed as Non-Executive Non-Independent Director in the combined entity.
Currently, PVR is operating 871 screens across 181 properties in 73 cities, while INOX is operating 675 screens across 160 properties in 72 cities. The combined entity will be named as PVR INOX Limited. While existing screens will continue with the branding of PVR and INOX respectively, new cinemas opened post the merger will be branded as PVR INOX, the release said. “The combined entity will become the largest film exhibition company in India operating 1546 screens across 341 properties across 109 cities,” it said.
“While strongly countering the adversities posed by the advent of various OTT platforms and the after-effects of the pandemic, the combined entity would also work towards taking world-class cinema experience closer to the consumers in Tier 2 and 3 markets,” it added.