The Mumbai bench of the National Company Law Tribunal (NCLT) on Thursday has approved the merger of multiplex operators PVR and Inox.
“The NCLT Mumbai Bench, has allowed the proposed scheme today (Thursday). The copy of the detailed order is awaited and the same shall be disclosed to the stock exchanges as and when received by the company,’’ both the companies said in a regulatory filing to the stock exchanges.
Once the detailed order is available, the companies are expected to file it with the stock exchanges and the registrar of companies.
PVR and Inox had announced an all-stock merger in March. The transaction will create the country’s largest film exhibition company operating at least 1,546 screens across 160 properties in 72cities. While Inox will merge with PVR, its shareholders will receive three shares of PVR for every 10 held. The merged entity will be named PVR Inox Ltd.
The branding of existing screens will continue as PVR and Inox, respectively. However, new cinemas opened after the merger will be branded as PVR Inox, the companies had said.
While Ajay Bijli who is the chairman & managing director of PVR will be appointed as the managing director, Sanjeev Kumar Bijli will be appointed as the executive director of the amalgamated company.
Pavan Jain who is then on-executive chairman of Inox will be the non-executive chairman of the board. Siddharth Jain, a director at InoxLeisure, would be appointed as the non-executive non-independent director in the combined entity.
The companies had also disclosed the promoters of Inox will become the co-promoters in the amalgamated entity along with the existing founders of PVR.
Upon effectiveness of the scheme, the board of directors of the merged company would be re-constituted with a board strength of 10. Both the promoter families will have equal representation with two board seats each.
After the merger, PVRpromoters will hold 10.62 percent stake, while the Inox promoters will have 16.66 per cent holding.