PVR & INOX merger transforms into largest entertainment company in India
India’s multiplex chains PVR Ltd and INOX Leisure Ltd have announced their merger to become country’s largest entertainment company. On Sunday, the union of two companies was approved by their boards and share exchange ratios were stamped.
After the merger, promoters of INOX and PVR will be the co-promoters of the new entity post amalgamation. The new merged company’s board of directors would constitute 10 members and both merging companies would have equal representation on Board with 2 board members each.
The terms of merger have ruled that INOX shareholders will receive 3 shares in PVR for each 10 shares in INOX. Furthermore, PVR promoters will 10.62 per cent stake as compared to 16.66 per cent for INOX promoters in the combined company.
Currently, PVR is operating 871 screens pan India across 181 properties in 73 cities. On the other hand, INOX is operating 675 screens in 72 cities across 160 properties. Post merger, the new entity will become India’s largest film exhibition company and will be operating 1,546 screens across 341 properties being spread over 109 cities.
On Monday, following the merger announcement shares of PVR Ltd and Inox Leisure Ltd jumped in the morning trade on NSE. Shares of Inox saw a rise of about 13 per cent to Rs 531 per piece, thereby surpassing their pre-covid highest rate of Rs 495 per share as on 24 February, 2020. In comparison, shares of PVR rose by approximately 8 per cent and are slightly lower than their highs pre-covid.
The new entity will have Ajay Bijli as the managing director and Sanjeev Kumar as the executive director. Pavan Kumar Jain would be appointed as the non-executive chairman of the Board, and Siddharth Jain would be the non-executive non-independent director in the new entity post merger.
“The combined entity will be named as PVR INOX Limited with branding of existing screens to continue as PVR and INOX respectively,” PVR said in a statement.