PVR-INOX merger: Shareholders, creditors to meet on October 11
Premium- On August 22, the Mumbai bench of the National Company Law Tribunal (NCLT) asked PVR to schedule a meeting regarding the merger
Multiplex operator PVR has called a meeting of its shareholders and creditors on October 11 to seek their approval for a merger with rival Inox Leisure. On August 22, the Mumbai bench of the National Company Law Tribunal (NCLT) asked PVR to schedule a meeting regarding the merger.
"We wish to inform you that pursuant to the order pronounced on August 22, 2022 and received on September 5, 2022, meetings of equity shareholders will be held through video conferencing or other audio visual means on Tuesday, October 11, 2022, at 11:30 AM," PVR informed exchanges on Thursday.
The offline meeting of secured creditors of the company will be held at PVR's registered office in Mumbai on the same day at 3 PM, the company added.
In June this year, both PVR and Inox Leisure had said they had received clearances for their merger from bourses NSE and BSE.
However, last month non-profit group CUTS filed a complaint against the proposed merger before fair trade regulator CCI, alleging that the deal will have anti-competitive effects on the film exhibition industry. It had requested the Competition Commission of India (CCI) to investigate the matter.
On March 27, PVR and Inox Leisure announced the merger to create the largest multiplex chain in the country with a network of more than 1,500 screens to unlock the opportunities in tier III, IV and V cities, besides in the developed markets.
As per the agreement, the swap ratio is 3:10 i.e., 3 shares of PVR for 10 shares of Inox. Post-merger, the board will be reconstituted and will have 10 members. Both promoter families will have equal representation on board with 2 seats each.
The combined entity will be named PVR INOX Ltd with the branding of existing screens to continue as PVR and INOX.
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Post merger, promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR. PVR promoters will have a 10.62% while INOX promoters will have a 16.66% stake in the combined entity.
New cinemas opened post the merger will be branded as PVR INOX, the companies had said.
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