Indian multiplex giants PVR and INOX Leisure have announced their merger after a meeting of their Board of Directors on Sunday.
This is a surprising turn of events as PVR was all set to merge with the Indian arm of Cinépolis. One can only assume that the deal hit a rough patch.
The joint entity will be branded as PVR INOX. The existing screens of both players shall stay the same, but new screens added will be branded under PVR INOX. The merged giant will operate a staggering 1,546 screens across 109 cities in India.
The promoters of PVR will hold 10.62% in the combined entity while that of INOX will hold 16.66%. The shareholders of INOX will receive 3 shares in PVR for every 10 shares held.
The Board of Directors of the merged company would be re-constituted with total board strength of 10 members and both the promoter families having equal representation on the Board with 2 board seats each.
Ajay Bijli, MD of PVR, will be appointed as MD of the joint entity while Sanjeev Kumar as Executive Director and Siddharth Jain as Non-Executive non-independent director.
As lovely as this may sound, the merger is subject to approval from shareholders of both entities and SEBI among other regulatory approvals.
Highlight by Aman Agarwal.