New Delhi: PVR Limited, which operates multiplex chain, and INOX Leisure Limited have announced a merger agreement. After this agreement, the largest multiplex chain of 1,500 screens will come into existence. PVR and INOX have told in separate information sent to the stock exchanges that the Board of Directors of both the companies in their meeting held on Sunday have given green signal to the merger of all the shares of INOX with PVR.
Both the companies will operate their existing multiplexes under the old name, while the name of the combined company will be 'PVR INOX Ltd'. The new cinemas that will open after the merger will be introduced in the name of 'PVR INOX'. As per the agreement, the share swap ratio for the merger of INOX with PVR will be 3:10 (3 shares of PVR for 10 shares of INOX). In the information sent to the stock exchange, it has been told that, 'The permission of the shareholders of PVR and INOX, the stock exchange, the Securities and Exchange Board of India (SEBI) and other regulators is yet to be taken on this merger agreement.' According to the agreement, the promoters of PVR will hold 10.62 percent in the combined company, while the promoters of INOX will hold 16.66 percent.
Once the merger becomes effective, the number of members of the board of directors in the combined company will be increased to 10. Along with this, two members each from the promoter family of both the companies will be given a place on the board of directors. Ajay Bijli of PVR will be made the managing director and Sanjeev Kumar as the executive director of the merged company. Let us tell you that at present, PVR has 181 properties in 73 cities in the country, in which it operates 871 screens. Whereas, INOX has 675 screens operating across its 160 properties located in 72 cities.
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