PVR & Inox announce merger: Ajay Bijli to be MD of combined entity
Sanjeev Kumar to be appointed as Executive Director
PVR and Inox on Sunday announced the merger of their two companies in what may well be one the biggest business deals of the year. "Merger to bring together two of India's best cinema brands to deliver an unparalleled consumer experience with a network of more than 1,500 screens," Inox said in a statement.
Shareholders of Inox will get PVR shares in a pre-approved 'swap' ratio of 3:10; this means three equity shares of PVR can be swapped for 10 of Inox. Inox will have a 16.66 per cent stake in the new firm and PVR will have 10.62 per cent stake.
It was also decided that PVR Chairman Ajay Bijli will be the Managing Director of the combined entity and Sanjeev Kumar would be appointed as the Executive Director.
Chairman of INOX Group Pavan Kumar Jain will be appointed as the Non-Executive Chairman of the Board. Siddharth Jain will be appointed as Non-Executive Non-Independent Director in the combined entity, said the two firms in separate exchange filings.
The merger is subject to approval by shareholders of both companies as well as the Securities and Exchange Board of India (Sebi), stock exchanges, and other regulatory approvals as required, the statement added.
