PVR, Inox merger to create India’s multiplex behemoth
The combined entity will have a network of more than 1,500 screens in India
NEW DELHI: Leading film exhibition players PVR Ltd and Inox Leisure Ltd on Sunday announced a merger to create the largest multiplex chain in the country with a network of more than 1,500 screens.
The boards of directors of the two companies at their meetings held on Sunday have approved an all-stock amalgamation of Inox with PVR, the two companies said in separate regulatory filings.
Inox will merge with PVR in a share swap ratio of three shares of PVR for every 10 shares of Inox, according to the agreement. The combined entity will be named PVR Inox Ltd with the branding of existing screens to continue as PVR and Inox. New cinemas opened post the merger will be branded as PVR Inox, it said.
The merger will unlock significant complementarity and growth potential and offers revenue and cost synergies, the two companies said. The amalgamation is subject to the approval of the shareholders of PVR and INOX, respectively, stock exchanges, and Securities and Exchange Board of India, among others.
“Post the merger, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR,” the filings said. PVR Promoters will have a 10.62% stake, while Inox promoters will have 16.66% stake in the combined entity, it said.
When the merger comes into effect, the board of the merged company would be reconstituted with a total board strength of 10 members and both prowith moter families having equal representation on the board with two seats each.
PVR chairman and managing director (CMD) Ajay Bijli will be the managing director and Sanjeev Kumar the executive director of the merged entity. Inox’s Pavan Kumar Jain will be the non-executive chairman of the board and its leisure director Siddharth Jain would be the non-executive non-independent director in the combined entity.
”The partnership of these two brands will put consumers at the centre of its vision and deliver an unparalleled moviegoing experience. The film exhibition sector has been one of the worst impacted by the pandemic and creating scale to achieve efficiencies is critical for the long term survival of the business and to fight the onslaught of digital over-the-top platforms,” Bijli said.
“As we head into the industry’s revival amid headwinds, this decisive partnership would bring in enhanced productivity through scale, a deeper reach in newer markets and numerous cost optimisation opportunities, and continue to delight cinema fans with world-class experiences and landmark innovations,” Jain said.
PVR operates 871 screens across 181 properties in 73 cities, while Inox operates 675 screens across 160 properties in 72 cities. “The combined entity will become the largest film exhibition firm in India operating 1,546 screens across 341 properties and 109 cities,” the filings said.