PVR and INOX Leisure Announce Merger

On Sunday, the popular theatre chains of India- PVR and Inox Leisure has announced a merger. The Board of both the companies at their respective meetings approved an all-stock amalgamation of INOX with PVR. In a joint statement both the companies said: "The amalgamation is subject to the approval of the shareholders of PVR and INOX respectively, stock exchanges, SEBI, and such other regulatory approvals as may be required. Upon obtaining all approvals, when the merger becomes effective, INOX will merge with PVR." According to both companies, shareholders of INOX will receive shares of PVR in exchange for shares of the former at the approved exchange ratio. The company further added, "Post the merger, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR. Upon effectiveness of the scheme, 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." After the merger, Ajay Bijli would be appointed as the Managing Director and Sanjeev Kumar would be appointed as the Executive Director. Also after the amalgamation of the two companies, promoters of PVR will have a 10.62 percent stake while INOX promoters will have a 16.66 percent stake in the new entity.