Multiplex major Inox Leisure on Tuesday said it has received approval from the BSE and the NSE for the proposed scheme of amalgamation of leading film exhibition players PVR Ltd with the company.
In a notification to the stock exchanges, the company said, "We would like to inform you that the Company has received observation letter with "no adverse observations" dated 20th June 2022 from BSE Limited and observation letter with "no objection" dated 21st June, 2022 from National Stock Exchange of lndia Limited respectively in relation to the Scheme of Amalgamation."
According to norms, companies seeking to execute a merger or de-merger strategies need to obtain a 'no-objection certificate' from stock exchanges.
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The merger will create the largest multiplex chain in the country with a network of more than 1,500 screens. The combined entity will be named PVR INOX Ltd with the branding of existing screens to continue as PVR and INOX respectively. New cinemas opened post the merger will be branded as PVR INOX, it added.
As per the agreement, INOX will merge with PVR in a share swap ratio of 3 shares of PVR for every 10 shares of INOX. PVR Promoters will have a 10.62 percent stake while INOX promoters will have a 16.66 percent stake in the combined entity.
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.
The stock of Inox Leisure closed at Rs 482.15 apiece on BSE, up by 5.38 percent from the previous close. The PVR Ltd scrip ended 5.71 percent up at Rs 1,785.50 apiece.
First Published: Jun 21, 2022 11:06 PM IST
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