According to the chairman of PVR, the merger of major film exhibition players PVR Ltd and Inox Leisure Ltd will give a boost to the business and all stakeholders will benefit from this consolidation in the sector, which is expected to receive necessary regulatory approvals in the next six-nine months. Is. and Managing Director Ajay Bijli.
However, he said as of now there is no agenda to renegotiate real estate and mall rentals.
Bijli told CNBC-TV18 that the exhibition sector has taken a huge hit during the pandemic and that the film industry and mall owners need to stabilize from the impact of the pandemic.
In regulatory filings on Sunday, the companies announced that their boards have approved the all-stock amalgamation of INOX with PVR.
For 10 shares of INOX, INOX shareholders will receive three shares in PVR.
Post the merger, the promoters of PVR will hold 10.62 per cent, while the promoters of Inox will hold 16.66 per cent in the combined entity.
Bijli told CNBC-TV18 that India has a strong film industry and out-of-home viewing market.
He said the merger does not require any approval from the Competition Commission of India (CCI), while the necessary approvals from the National Company Law Tribunal (NCLT), SEBI and shareholders will take six-nine months.
He said that as the regulatory body, CCI has the right to send notification for the merger.
Bijli also said that the business of the companies was affected due to the pandemic and the merger does not meet the threshold for CCI approval.
“After the merger, the promoters of INOX along with the existing promoters of PVR will become co-promoters in the merged entity. Upon the scheme taking effect, the board of directors of the merged company will be reconstituted with a total board strength of 10 members and two board seats with equal representation to both promoter families on the board,” according to a filing. BSE.
PVR currently operates 871 screens across 181 properties across 73 cities, while INOX operates 675 screens across 160 properties across 72 cities.
With the merger, the combined entity will become the largest film exhibition company in India operating 1,546 screens across 341 properties in 109 cities.
Commenting on the merger announcement on Sunday, Bijli said, “This is a momentous occasion that brings together the two companies with significant complementary strengths. The partnership of these two brands will put consumers at the center of their vision and provide them with a unique movie watching experience.”
He said that the film exhibition sector has been one of the worst affected sectors due to the pandemic and scale up to achieve efficiency is crucial for the long term survival of the business and to fight the onslaught of digital OTT platforms.
Siddharth Jain, Director, INOX Leisure, said, “The coming together of two iconic cinema brands, driven by passion, is certainly the most historic moment in the Indian cinema exhibition industry.”
He added that the two companies have set high service standards in an effort to provide the best cinema experience to the most passionate moviegoers in the world, and will continue to do so as an integrated entity.
EY is the exclusive Financial Advisor on Transactions.
read all breaking news , today’s fresh news And IPL 2022 Live Updates Here.