PVR Ltd, INOX merger to create largest multiplex chain in India

The firms say the amalgamation will unlock significant complementarity and growth potential

Leading film exhibition players PVR Ltd and INOX Leisure Ltd on Sunday announced a merger deal to create the largest multiplex chain in the country with a network of more than 1,500 screens.

The respective board of directors of the two companies at their meetings held on Sunday have approved an all-stock amalgamation of INOX with PVR, the two companies said in separate regulatory filings.

The combined entity will be named PVR Inox Ltd with the branding of existing screens to continue as PVR and INOX. New cinemas opened post the merger will be branded as PVR Inox, they added.

As per the agreement, INOX will merge with PVR in a share swap ratio of 3 shares of PVR for every 10 shares of INOX.

“The amalgamation is subject to the approval of the shareholders of PVR and INOX, respectively, stock exchanges, the SEBI and such other regulatory approvals as may be required.”

"Post the merger, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR," the filing said.

PVR Promoters will have a 10.62% stake, while INOX promoters will have 16.66% stake in the combined entity, it added.