PVR and INOX Leisure made the announcement of their intention to merge their businesses on March 27 of this year. The purpose of the merger is to create the largest multiplex chain in the country with a network of more than 1,500 screens and to unlock opportunities in tier III, IV, and V cities in addition to developing markets.
On Tuesday, multiplex operators PVR and INOX Leisure NSE 1.97 percent announced that they had got clearances from bourses NSE and BSE for their merger. “The company has received observation letter with ‘no adverse observations’ dated June 20, 2022 from BSE Ltd NSE 1.14 percent and observation letter with ‘no objection’ dated June 21, 2022 respectively in relation to the scheme of amalgamation,” said PVR in a regulatory filing. These letters were received in relation to the scheme of amalgamation.
This was validated by INOX as well through the submission of the same type of regulatory file.
Any plan of merger must first get a certificate from the exchange stating that it has “no objections” before it can move on to the next step of gaining permission from the National Company Law Tribunal and other regulatory agencies.
PVR and INOX NSE 1.97 percent Leisure made the announcement of their intention to merge their businesses on March 27 of this year. The purpose of the merger is to create the largest multiplex chain in the country with a network of more than 1,500 screens and to unlock opportunities in tier III, IV, and V cities in addition to developing markets.
The newly formed company will be known as PVR INOX Ltd., and the branding of the screens that are already in place will remain as PVR and INOX, respectively. The firms announced on March 27 that after the merger, any new theatres that are established, they would be branded as PVR INOX.
INOX and PVR are going to combine their businesses, and the agreement calls for a share-swap ratio of 3 shares of PVR for every 10 shares of INOX.
Following the completion of the merger, the present promoters of PVR will continue in their roles as co-promoters inside the newly formed organisation, which will also include the promoters of INOX.
It was also said that promoters of PVR would have a 10.62 percent interest in the merged firm, while promoters of INOX will have a 16.66 percent stake in the combined entity.