Two of your favorite cinemas, PVR and Inox, are merging into one entity—PVR Inox.
PVR has 871 screens in 73 cities, and Inox has 675 screens across 72 cities. Their merger will create India’s largest multi-screen exhibitor with 1546 screens.
As for branding, existing screens are likely to continue as PVR and Inox. Only new cinemas that would open post-merger will feature the brand name PVR Inox.
When will the merger be complete?
The boards of PVR and Inox have approved an all-stock amalgamation to create a combined entity, PVR Inox. The merger will be complete in six to nine months and once PVR and Inox obtain approvals from their shareholders, the stock exchange, Securities and Exchange Board of India (Sebi), and National Company Law Tribunal (NCLT).
What will be the promoter’s stake in PVR Inox?
In PVR Inox, promoters of PVR will have 10.62 percent stakeholding, and the promoters of Inox will have 16.66 stakeholding.
“Post the merger, the promoters of Inox will become co-promoters in the merged entity along with the existing promoters of PVR. Upon effectiveness of the scheme, the board of directors of the merged company would be reconstituted with total board strength of 10 members. Both the promoter families have equal representation on the board with two board seats each,” read a filing report from PVR.
The stock exchange filing of PVR added, “Inox shareholders will receive three shares of PVR for ten shares of Inox.”
The new board to-be and what Ajay Biji and Siddharth Jain have to say on the merger.
Ajay Bijli would serve as the Managing Director (MD), and Sanjeev Kumar as Executive Director. Pavan Kumar Jain would act as the non-executive chairman and Siddharth Jain as the non-executive and non-independent director.
Biji, CMD, PVR said, “The partnership of these brands will put the consumer at the center of its vision and deliver an unparalleled movie-going experience to them. The film exhibition sector has been one of the worst-impacted sectors on account of the pandemic. And, creating scale to achieve efficiencies is critical for long-term survival of the business and fight the onslaught of digital OTT platforms.”
Siddharth Jain, Director, Inox Leisure, said, “As we head into the industry’s revival, this partnership will bring enhanced productivity through scale, a deeper reach in newer markets, and numerous cost-optimization opportunities.”
While countering challenges from OTT platforms, PVR Inox plans to take world-class cinema experience to tier-2 and tier-3 cities, adding at least 200 new screens a year.