India’s leading multiplex giants – PVR and Inox – announced their merger on Sunday, after a meeting of their respective board of directors approved an all-stock merger. Inox will now have a 16.66 percent stake, while PVR will have a 10.62 percent stake in the combined entity.
Their union will be named PVR Inox Limited. New cinema halls that will open after the merger will be named PVR Inox.
While Ajay Bijli will be the managing director of the merger, Sanjeev Kumar is appointed as the executive director, said a joint release said from Inox and PVR.
“This is a momentous occasion that brings together two companies with significantly complementary strengths. 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,” said Bijli.
Pavan Kumar Jain who is the chairman of Inox group is appointed as the non-executive chairman of the board and Siddharth Jain will be appointed as non-executive non-independent director, the release said.
The release further added that the amalgamation is subject to the approval of the shareholders of PVR and Inox, respectively, stock exchanges, SEBI, and other such regulatory approvals as may be required. Post the merger, the promoters of Inox will become co-promoters in the merged entity along with the existing promoters of PVR.
(With inputs from ANI)