PVR Limited, INOX Leisure Limited announce merger

Mumbai, March 27: India's leading multiplex players PVR and Inox on Sunday announced their merger after meetings of their board of the directors. The respective boards of the two companies approved an all-stock stock amalgamation of INOX with PVR. The combined entity will be named PVR Inox Limited, with the branding of existing screens to continue as PVR and Inox. New cinema halls which will open post the merger will be branded as PVR Inox. The amalgamation is subject to 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. Shareholders of INOX will receive shares of PVR in exchange of shares in INOX at the approved share exchange (“swap”) ratio. 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. Ajay Bijli would be appointed as the Managing Director and Sanjeev Kumar would be appointed as the Executive Director. Pavan Kumar Jain would be appointed as the Non- Executive Chairman of the Board. Siddharth Jain would be appointed as Non-Executive Non-Independent Director in the combined entity.