Two Of India’s Biggest Multiplex Chains, PVR & Inox Are All Set To Merge ( Photo Credit – Facebook )
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Who doesn’t love watching their favourite stars and most-awaited films in theatres? Well, as per a recent report, the theatre experience is all set to get much better for moviegoers as PVR Ltd and Inox Leisure Ltd – India’s top two multiplex chains – are all set to merge.
This merge will create India’s largest film exhibition entity with a network of more than 1,500 screens. Read on to know all the details we have got our hands on in regards to this merger.
As reported by livemint, an all-stock merger of PVR Ltd and Inox Leisure Ltd was approved on Sunday to create India’s largest film exhibition entity. While the companies’ existing multiplex screens will retain their brands, new cinemas opened post this union will be branded PVR Inox – as informed by PVR to stock exchanges on Sunday. The merged entity will be named PVR Inox Ltd.
Talking about the stakes each company will have in the new entity, the report revealed that Inox promoters will own a 16.66% stake, while PVR founders will own 10.62%. PVR’s chairman and managing director Ajay Bijli will take on the job as managing director of the merged entity, and Sanjeev Kumar Bijli will be its executive director.
The report also states that Pavan Kumar Jain, chairman of Inox, will be appointed non-executive chairman and director Siddharth Jain will be appointed non-executive non-independent director in PVR Inox Ltd. The board of the merged company would have 10 directors, and both promoter families will have two board seats each.
So what propelled this merge to happen? The report claims that the consolidation between PVR Ltd and Inox Leisure Ltd happened due to the pandemic-led closures of theatres and the rise in popularity of streaming platforms. Analysts say that the cash crunch caused by the prolonged closures of cinema ha; has made it tough for cinema chains to invest in new properties and easier to partner with rivals to ramp up screen count.
The PVR Ltd and Inox Leisure Ltd merged company will operate 1,546 screens across 341 properties and 109 cities in India. The merger is subject to approvals from the shareholders of Inox and PVR and other regulators, the two companies said in a statement. Together, the two companies are looking at opening 180-200 new screens every year, especially in small towns and the hinterland, which are grossly under-screened said Ajay Bijli.
