With the Pandemic casting its shadow over cinema halls, multiplexes saw huge losses and it was predicted to be the endgame for big-screen cinema. However, the game seems to have changed since PVR Ltd and INOX Leisure Ltd decided to merge to form the largest entertainment company in the country.

INOX shareholders will receive three shares of PVR for every 10 shares of INOX. According to an IE report, after the merger, PVR promoters will have 10.62 per cent stake while INOX promoters will have 16.66 per cent stake in the combined entity. The combined entity will reportedly be named PVR INOX Ltd with the existing multiplexes called PVR and INOX, PVR said in a statement.

CHANGE IN MARKET DYNAMICS

After being hit with the pandemic and the success of OTT platforms, this partnership will take world-class cinema experience closer to the consumers in tier-2 and tier-3 markets, PVR and INOX said.

Besides ensuring tremendous value creation for all stakeholders, the merger is expected to benefit the Indian cinema exhibition industry in terms of growth. Siddharth Jain, Director, INOX Leisure, has said that this partnership would bring in enhanced productivity through scale, a deeper reach in newer markets and numerous cost optimization opportunities.

FINE DETAILS OF THE MERGER

– The merger is a win-win situation for both PVR and INOX. PVR is as of now operating 871 screens in 73 cities while INOX is operating 675 screens in 72 cities. The combined entity will become the largest film exhibition company in the country, operating 1,546 screens across 341 properties in 109 cities. The numbers definitely speak for themselves!

– INOX promoters will become co-promoters in the combined entity along with the existing promoters of PVR.

– IE has reported that Ajay Bijli would become the managing director and Sanjeev Kumar would be appointed as the executive director. The combined entity would appoint Pavan Kumar Jain as the non-executive chairman of the board while Siddharth Jain would be appointed as the non-executive, non-independent director.

-Further, the board of directors of the merged company would be re-appointed with a strength of 10 members. According to the report, both the promoter families will have equal representation with two board seats each.