PVR and INOX announced a merger, sending shares price to all-time highs
Inox will own 16.66 of the combined entity after the merger is completed. While PVR will own 10.62%. Ajay Bijli will be named managing director of the merged PVR Inox Ltd company.
Digital Desk: PVR and Inox announced the merger of their two companies on Sunday in what could be one of the year's most prominent financial pacts. "With a network of more than 1,500 screens, "the merger will bring together two of India's best cinema brands to deliver an unparalleled consumer experience," Inox said.
Inox investors will receive PVR shares in a pre-approved "swap" ratio of 3:10, which means three PVR equity shares can be exchanged for ten Inox equity shares. Inox will have a 16.66% stake in the new company, while PVR will have a 10.62% stake.
The merger is subject to approval by both companies' shareholders and the Securities and Exchange Board of India (Sebi), stock exchanges, and any other regulatory approvals required, according to the assertion.
After the merger, the company will be known as PVR Inox Limited. Screens that are already known as PVR or Inox will continue to operate under those names, but those that open after the merger will operate under the combined name, according to Inox.
PVR Inox Limited's managing director will be Ajay Bijli. Sanjeev Kumar will be the consolidated board's executive director, and Pavan Kumar Jain will be the non-executive chairman.
The reconstituted board will consist of ten members. With two sets each, Inox and PVR will have an equal representation on the board.
According to the statement, "The combined entity will become India's largest film exhibition company, operating 1,546 screens across 341 properties in 109 cities."
The merger comes as theatres across the country reopen after being closed for months due to the COVID-19 pandemic.
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