PVR-INOX Merger Gets Clearance From BSE And NSE
The combined entity will be named PVR Inox Ltd., but their current branding will continue for existing screens. New cinemas will be branded as PVR INOX.
PVR Ltd. and Inox Leisure Ltd. have received approval for their mega-multiplex merger from India's stock exchanges.
PVR has received observation letter with "no adverse observations" dated June 20 from BSE Ltd. and observation letter with "no objection" dated June 21 from National Stock Exchange of India, the company said in a regulatory filing on Tuesday. This was also confirmed by Inox Leisure through an identical regulatory filing.
A no objection certificate from the exchange is a mandatory step for getting clearance from the National Company Law Tribunal and other regulatory authorities for any scheme of amalgamation.
On March 27, PVR and Inox Leisure announced a merger deal to create the largest multiplex chain in India. The combined entity will be named PVR Inox Ltd., but their current branding will continue for existing screens. New cinemas will be branded as PVR INOX.
According to the merger agreement, Inox will merge with PVR in a share-swap ratio of three shares of PVR for every 10 shares of Inox. Promoters of Inox Leisure will become co-promoters of the entity. PVR promoters will have a 10.62% stake while Inox's promoters will have a 16.66% stake in the combined entity.
