PVR and Inox Obtain SEBI Approval to Merge to Create India’s Largest Multiplex Chain

Multiplex operators PVR and Inox said on Tuesday they had obtained Securities and Exchange Board of India (SEBI) approval for their merger, taking an important step in the regulatory process.

The two companies announced in March a merger to create India’s largest multiplex chain with a network of more than 1,500 screens. Pursuant to the agreement, Inox would merge with PVR in a share exchange ratio of 3 shares (of PVR) for 10 shares of Inox.

“The merger is subject to the approval of the shareholders of PVR and Inox respectively, the stock exchanges, SEBI and any other regulatory approval that may be required. Following the merger, the promoters of Inox will become joint promoters in the merged entity, along with the current promoters of PVR,” the two companies said in March.

The promoters of PVR will hold a 10.62% interest in the combined entity. The promoters of Inox will hold a 16.66% stake, they said.

Analysts expect the merger process to be completed within 2-3 quarters of SEBI approval.

When the merger becomes effective, the board of directors of the combined company will be reconstituted with a total membership of 10 members. The PVR and Inox promoter families will have equal representation on the board of directors with two seats each.

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