Multiplex Operators PVR-INOX Merger Reaches In Final Stage
The 2 leading multiplex operators PVR and INOX are going to be merged. The companies have got the approval from the National Company Law Tribunal.
The merger of two leading multiplex operators PVR and Inox was authorized by the National Company Law Tribunal on January 12, 2023, according to separate filings the two chains made with the stock exchanges.
The release of the detailed order, according to the attorneys, may take a few more days. Following that, it would be declared to the stock markets and lodged with the registrar of businesses.
According to those in the know, the merger ratio of 3 shares of PVR for 10 shares of Inox was authorized by the Mumbai bench of the NCLT on Thursday.
The largest and second-largest movie theater chains in the nation, PVR and Inox, announced on March 27, 2022, that they planned to merge, creating a network of more than 1,500 screens.
The NCLT, stock exchanges, the Securities and Exchange Board of India, as well as shareholders and creditors, all had to approve the proposal.
The proposal was authorized over the past few months by stock exchanges, Sebi, shareholders, and creditors, but the NCLT’s permission was still pending.
After having its case denied by the Competition Commission of India, a non-profit organization by the name of CUTS petitioned the National Company Law Appellate Tribunal.
The NCLAT had scheduled the case for February 9, according to Siddharth Jain, director of the Inox group, who spoke with Business Standard last month.
After receiving the comprehensive order from the NCLT, according to those in the know, PVR is likely to distribute shares to Inox shareholders within the next weeks.
The combined company will be known as PVR Inox, and the PVR and Inox logos on current screens will remain in place. The firms had stated last year that any new halls created as a result of the merger will be known as PVR Inox.
The Inox promoters will join the current PVR promoters as co-promoters in the amalgamated company following the merger.
The promoters of PVR will own 10.62 percent of the combined company, while the promoters of Inox will own 16.66 percent.
In five years, according to PVR Joint Managing Director Sanjeev Bijli, the combined company will have 3,000 to 4,000 screens.
For this, he said, the combined company would tap into more recent cities, which were underserved and had enormous potential.
Their focus will be on markets in the south and east of the nation in particular to increase penetration, according to Biji.