A date has been confirmed for the merger of India’s two largest multiplex operators; 17 February will be the day that PVR Cinema and INOX Leisure will combine to form PVR-INOX. The announcement comes after the approval of the merger by the Mumbai bench of the National Company Law Tribunal’s (NCLT) in January of this year. Together they will be by far the largest cinema operator in India and dominate the market in the world’s largest film business in terms of annual admissions and films produced.
The merged PVR-INOX will have an estimated 1,625 screens spread over 350 properties. While this only represents 17% of all cinema screens in India, it would account for 36% to 38% of total box office collection and close to 50% of all multiplex screens. The new company plans 150-200 news screens per year, primarily targeting tier two and three cities, with the aim of having 3,000 screens within the next five years.
The ILL Committee of board of directors for operations of Inox Leisure in mutual agreement with the company have fixed February 17, 2023 as the ‘Record Date’ for the purpose of determining the shareholders of Inox Leisure to whom equity shares of the company would be allotted, pursuant to the scheme.PVR filing to the Bombay Stock Exchange (BSE).
Inox shareholders are set to receive three shares of PVR for 10 shares held in INOX Leisure on 17 February. The merged company is expected to have both higher pricing and greater bargaining power when it comes to negotiating with film distributors.