PVR Cinema's shareholders have approved the merger with Inox Leisure. The announcement was notified in a regulatory filing by Inox Leisure.
The two companies' boards — the country's largest multiplex chain operators — approved an all-stock merger to create a film exhibition entity with a network of more than 1,500 screens.
Following the merger, promoters of Inox will hold a 16.66 percent stake in the new company, while the founders of PVR will hold a 10.62 percent stake. Ajay Bijli, chairman and managing director of PVR, would serve as managing director, and Sanjeev Kumar Bijli would be the executive director of the combined company.
Last month, The Competition Commission of India (CCI) dismissed a complaint made against the PVR-INOX merger by non-profit group Consumer Unity & Trust Society (CUTS) in August. CUTS alleged that the deal would have anti-competitive effects on the film exhibition industry.
The Competition Commission of India (CCI) has dismissed a complaint made against the PVR-INOX merger by the non-profit group Consumer Unity & Trust Society (CUTS).
In June Inox Leisure announced it had received approval from the BSE and the NSE for the proposed scheme of amalgamation of leading film exhibition players PVR Ltd with the company.
When the merger comes into effect, the board of the merged company would be reconstituted with total board strength of 10 members and both the promoter families having equal representation on the Board with two board seats each.
PVR’s Ajay Bijli would be appointed as the managing director and Sanjeev Kumar would be appointed as the executive director of the merged entity. Inox’s Pavan Kumar Jain would be appointed as the non-executive chairman of the board and Siddharth Jain would be appointed as a non-executive non-independent director in the combined entity.
PVR currently operates 871 screens across 181 properties in 73 cities while INOX operates 675 screens across 160 properties in 72 cities.
Shares of PVR Pictures closed at Rs 1723, up by 0.7 percent and Inox Leisure share closed red at Rs 501, down by 0.7 percent from the previous close on the BSE.
First Published: Oct 12, 2022 3:44 PM IST
