The Mumbai bench of the National Company Law Tribunal (NCLT) has given its approval for the proposed merger of multiplex chains PVR Ltd and Inox Leisure Ltd. The merged entity will be India’s leading multiplex operator with over 1,600 screens.
The two companies announced “an all-stock amalgamation scheme“ in March last year. “We would like to inform that Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench, has allowed the Proposed Scheme today-.January 12, 2023. The copy of detailed order is awaited,“ PVR Ltd said in a BSE filing.
Under the all-stock amalgamation scheme, Inox will merge with PVR. The combined entity will be named PVR Inox Ltd, and the branding of existing screens will continue as PVR and Inox respectively. Post the merger, the promoters of Inox will become co-promoters in the merged entity along with the existing promoters of PVR. Promoters of PVR will have a 10.62 per cent stake while INOX Promoters will have a 16.66 per cent stake in the combined entity, the two companies had informed in their earlier regulatory filings.
“Ajay Bijli would be appointed as the Managing Director and Sanjeev Kumar would be appointed as the Executive Director. Pavan Kumar Jain would be appointed as the Non- Executive Chairman of the Board. Siddharth Jain would be appointed as Non-Executive Non-Independent Director in the combined entity,” the companies had stated last year.
Upon the effectiveness of the scheme, the Board of Directors of the merged company would be re-constituted with a total board strength of 10 members, and both the promoter families will have equal representation on the Board, they stated. The Hindu BusinessLine