India’s Multiplex Leaders PVR and Inox to Merge, Following COVID Impact

variety.com:

Patrick Frater Asia Bureau ChiefTwo of India’s top three multiplex operators PVR and Inox Leisure are to merge creating a clear market leader in the sector.Inox shareholders will receive three new PVR shares for every ten Inox Shares they currently hold – there is no cash component or cash alternative – but the founding families (known in India as ‘promoters’) will gain equal representation on the new board of directors at the new PVR Inox Limited.The deal, which has the approval of both company’s directors and both sets of promoters, is subject to the approval of general shareholders, industry regulators and the stock market authorities.

No timetable was indicated.PVR’s Ajay Bijli is to be appointed as MD of PVR Inox, while Inox’s Pavan Kumar Jain is to be its non-executive chairman.

With PVR currently operating 871 screens at 181 properties in 73 cities and INOX operating 675 screens at 160 venues in 72 cities, the combined entity will become the largest film exhibition company in India operating 1546 screens across 341 properties across 109 cities.Explaining the rationale behind the deal, the companies said that the enlarged company would offer an unparalleled consumer experience, enjoy complementarity and growth opportunities and revenue and cost synergies.Another factor driving the long-time rivals into each other’s arms is the impact of the COVID-19 crisis which has caused on-off openings and closures of cinemas.

That has in turn caused the flow of new release titles to slow to a trickle and given India’s voracious streaming operators a golden opportunity.PVR’s MD and chairman, Bijli acknowledged as much.