Who does not like to watch their favorite stars and the most anticipated movies in theaters? Well, according to a recent report, the theater experience is going to be much better for moviegoers, as PVR Ltd and Inox Leisure Ltd – India’s two leading multiplexing chains – are about to merge.
This merger will create India’s largest film entity with a network of more than 1,500 screens. Read below to find out all the details we have on our hands about this merger.
According to livemint, the merger of PVR Ltd and Inox Leisure Ltd for the creation of India’s largest film exhibition company was approved on Sunday. While the companies’ existing multiplex screens will retain their brands, the new theaters that opened after the merger will be called PVR Inox – as announced by PVR on the stock exchanges on Sunday. The merged entity will be called PVR Inox Ltd.
Speaking about the shares that each company will have in the new entity, the report revealed that Inox supporters will hold a share of 16.66%, while the founders of PVR will hold 10.62%. PVR President and CEO Ajay Bijli will take over as the Managing Director of the merged entity and Sanjeev Kumar Bijli will be its Executive Director.
The report also states that Pavan Kumar Jain, President of Inox, will be appointed non-Executive Chairman and Director Siddharth Jain will be appointed Non-Executive Non-Executive Director of PVR Inox Ltd. The board of directors of the merged company will have 10 directors, and the two families of organizers will have two board seats each.
So what prompted this merger to happen? The report claims that the merger between PVR Ltd and Inox Leisure Ltd occurred due to the closure of theaters due to a pandemic and the growing popularity of streaming platforms. Analysts say the cash crisis caused by the prolonged closure of the cinema ha. has made it difficult for movie chains to invest in new properties and easier to work with competitors to increase the number of screens.
The merged company PVR Ltd and Inox Leisure Ltd will operate 1,546 screens in 341 properties and 109 cities in India. The merger is subject to approval by Inox and PVR shareholders and other regulators, the two companies said in a statement. Together, the two companies are considering opening 180-200 new screens each year, especially in small cities and inland, which are heavily submitted, said Ajay Bijli.
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