INOX Leisure Limited and PVR Limited announce merger : Bollywood News – Bollywood Hungama

The Board of Directors of INOX Leisure Limited (INOX) and the Board of Directors of PVR Limited (PVR), at their respective conferences held immediately, have accepted an all inventory amalgamation of INOX with PVR. The amalgamation is topic to approval of the shareholders of INOX and PVR respectively, inventory exchanges, SEBI and such different regulatory approvals as could also be required. Upon acquiring all approvals, when the merger turns into efficient, INOX will merge with PVR. Shareholders of INOX will obtain shares of PVR in trade of shares in INOX on the accepted share trade (“swap”) ratio.

INOX Leisure Limited and PVR Limited announce merger

INOX Leisure Limited and PVR Limited announce merger

Merger Terms
Post the merger, the promoters of INOX will grow to be co-promoters within the merged entity together with the prevailing promoters of PVR. Upon effectiveness of the scheme, the Board of Directors of the merged firm could be re-constituted with whole board energy of 10 members and each the promoter households having equal illustration on the Board with 2 board seats every. Pavan Kumar Jain could be appointed because the Non- Executive Chairman of the Board. Ajay Bijli could be appointed because the Managing Director and Sanjeev Kumar could be appointed because the Executive Director. Siddharth Jain could be appointed as Non-Executive Non-Independent Director within the mixed entity. The mixed entity shall be named as PVR INOX Limited with branding of current screens to proceed as INOX and PVR respectively. New cinemas opened put up the merger shall be branded as PVR INOX.

Drushti Desai, Registered Valuer, Partner at Bansi S. Mehta & Co. and SSPA & Co Chartered Accountants, the Independent Valuers appointed by INOX and PVR respectively, have beneficial a share trade ratio, which has been accepted by the respective Boards. Ernst & Young Merchant Banking Services LLP offered the Fairness Opinion to INOX, whereas Axis Capital Limited offered a Fairness Opinion to PVR on the share trade ratio. Accordingly, INOX shareholders will obtain 3 shares of PVR for 10 shares of INOX.

Post the merger, INOX Promoters can have 16.66% stake whereas PVR Promoters can have 10.62% stake within the mixed entity. Strategic rationale and advantages With INOX working 675 screens throughout 160 properties in 72 cities and PVR at present working 871 screens throughout 181 properties in 73 cities and, the mixed entity will grow to be the biggest movie exhibition firm in India working 1546 screens throughout 341 properties throughout 109 cities. The mixture would augur nicely for the expansion of the Indian cinema exhibition trade, apart from
making certain large worth creation for all stakeholders, together with clients, actual property builders, content material producers, know-how service suppliers, the state exchequer and above all, the workers. With shoppers on the core of the choice, the merger would concentrate on utilizing the
strengths of each the organisations to offer an distinctive customer support and cinema expertise to Indian moviegoers. While strongly countering the adversities posed by the appearance of assorted OTT platforms and the after-results of the pandemic, the mixed entity would additionally
work in direction of taking world-class cinema expertise nearer to the shoppers in Tier 2 and 3 markets.

Commenting on the announcement, Siddharth Jain, Director – INOX Leisure Ltd stated, “Coming together of two iconic cinema brands, which are driven by passion, is certainly the most historic moment in the Indian cinema exhibition industry. Both companies have set high service benchmarks in an endeavor to offer the best cinema experience in the world, to the most passionate moviegoers, and would continue to do so as a unified entity. As we head into the industry’s revival amidst headwinds, this decisive partnership would bring in enhanced
productivity through scale, a deeper reach in newer markets and numerous cost optimization opportunities, and continue to delight cinema fans with world-class experiences and landmark innovations.”

Commenting on the announcement, Ajay Bijli, Chairman and Managing Director of PVR stated – “This is a momentous occasion that brings together two companies with significantly complementary strengths. The partnership of these two brands will put consumer at the center 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.”

EY is the unique monetary advisor on the transaction. Dhruva Advisors and Khaitan & Co acted because the transaction tax advisors and authorized advisors respectively to INOX.


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