Inox, PVR announce merger; combined collaboration to be called PVR Inox Ltd

PVR Limited and INOX Leisure Limited would merge their operations in an all-stock amalgamation. "Merger to bring together two of India's best cinema brands to deliver an unparalleled consumer experience with a network of more than 1,500 screens," Inox said in a statement.Shareholders of Inox will get PVR shares in a pre-approved 'swap' ratio of 3:10; this means three equity shares of PVR can be swapped for 10 of Inox. Inox will have a 16.66 per cent stake in the new firm and PVR will have 10.62 per cent stake. The merger is subject to approval by shareholders of both companies as well as the Securities and Exchange Board of India (Sebi), stock exchanges, and other regulatory approvals as required, the statement added.

Once the merger is complete, the company will be known as PVR Inox Limited. Screens that are already exist as PVR or Inox will continue under those names but those opened post the merger will operate under the combined name, Inox said.Ajay Bijli will be managing director of PVR Inox Limited. Sanjeev Kumar will be executive director and Pavan Kumar Jain will be non-executive chairman of the consolidated board. The reconstituted board will have 10 members. Both Inox and PVR will have equal representation on the board with two sets each. "The combined entity will become the largest film exhibition company in India operating 1,546 screens across 341 properties in 109 cities," the statement read.The merger comes as theatres across the country re-open after spending months shut because of the Covid-19 pandemic.