PVR and Inox, India’s top multiplex operators, announced their merger on Sunday following board of directors meetings. The boards of directors of both firms authorised an all-stock merger of Inox and PVR.
The merged firm will be known as PVR Inox Limited, with current screens continuing to be branded as PVR and Inox. PVR Inox will be the name of new movie halls that open as a result of the merger.
The merger, however, is subject to approval by the shareholders of both businesses.
It was also determined that PVR Chairman Ajay Bijli would be chosen as the merged entity’s Managing Director, and Sanjeev Kumar would be named as the Executive Director.
Pavan Kumar Jain, Chairman of INOX Group, will be appointed as Non-Executive Chairman of the Board. According to separate exchange filings, Siddharth Jain will be appointed as Non-Executive Non-Independent Director of the merged corporation.
According to the terms of the deal, Inox will combine with PVR in a share swap ratio of three PVR shares for every ten Inox share.
PVR promoters will have 10.62 per cent of the merged firm, while Inox promoters would hold 16.66 per cent.
When the merger takes effect, the board of the amalgamated firm will be reconstituted with a total board strength of 10 members, with equal representation on the board for both promoter families with two seats each.