The respective Board of Directors of multiplex chains PVR Ltd and Inox Leisure (INOX) have approved an all stock amalgamation of Inox with PVR. Cinema theatre owners PVR and Inox Leisure on Sunday announced merger of their businesses to create the largest multiplex chain in the country with a network of more than 1,500 screens in 109 cities. After the merger, PVR promoters will hold 10.62 percent stake in the combined entity and Inox promoters, 16.66 percent stake.
As per the deal, the shareholders of Inox will get three shares of PVR for every 10 shares held in the company. Post-merger, the combined entity will be named as PVR INOX Limited and the new cinemas opened post the merger will be branded as PVR INOX. Ajay Bijli would be appointed as the Managing Director of the merged entity.