According to the agreement, PVR Promoters will have a 10.62 per cent stake and Inox promoters will have 16.66 per cent stake in the combined entity
An all-stock merger of India’s leading multiplex players PVR and Inox was announced on Sunday. The decision was taken by the respective boards of the two companies.
The amalgamation is subject to the approval of the shareholders of PVR and Inox, respectively, stock exchanges, SEBI and such other regulatory approvals as may be required.
According to a report by NDTV Profit, the combined entity will be named PVR Inox Limited. The new halls which will come post the merger of the two companies will be branded as PVR Inox.
A joint statement released by PVR, Inox hinted at the rise of over-the-top (OTT) streaming platforms having a major role in the consolidation.
“While strongly countering the adversities posed by the advent of various OTT platforms and the after-effects of the pandemic, the combined entity would also work towards taking world-class cinema experience closer to the consumers in tier 2 and 3 markets,” read the joint statement.
In a joint decision, PVR Chairman Ajay Bijli has been appointed as the managing director of PVR Inox Limited, and Sanjeev Kumar has been appointed as the Executive Director.
Meanwhile, INOX Group Chairman Pavan Kumar Jain will be appointed as the non-executive chairman of the board and Siddharth Jain will be appointed as non-executive non-independent director of PVR Inox, as reported by NDTV Profit.
According to the agreement, PVR Promoters will have a 10.62 per cent stake and Inox promoters will have 16.66 per cent stake in the combined entity.
The board of the PVR Inox Limited would be reconstituted with total board strength of 10 members.
Bijli said, “The partnership of these two brands will put consumers at the centre 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 the long term survival of the business and fight the onslaught of digital OTT platforms”.
While Jain said, “As we head into the industry’s revival amidst 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”.
PVR currently 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 company in India operating 1,546 screens across 341 properties across 109 cities, according to PTI.