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PVR shareholders approve merger with rival INOX Leisures
Multiplex operator PVR on Wednesday said it has received the nod from its shareholders for the scheme of merger with rival Inox Leisure.
The leading cinema exhibitor convened a meeting of its shareholders on Tuesday following the directions of the Mumbai bench of the National Company Law Tribunal (NCLT). The proposal was passed by over 99% of the number of valid votes cast, said the scrutiniser’s report of the meeting shared by PVR.
In June this year, both PVR and Inox Leisure said they had received clearance for their merger from bourses NSE and BSE.
On March 27, PVR and Inox Leisure announced the merger to create the largest multiplex chain in the country with a network of more than 1,500 screens to unlock the opportunities in tier III, IV and V cities, besides in the developed markets.
The combined entity will be named PVR INOX Ltd. with the branding of existing screens to continue as PVR and INOX.
New cinemas opened post the merger will be branded as PVR INOX, the companies had said.
Earlier, non-profit group CUTS had complained before the fair trade regulator CCI the proposed merger agreement would have anti-competitive effects on the film exhibition industry and sought a detailed probe against the two entities.
However, the Competition Commission of India (CCI) on September 13, had rejected the complaint, saying apprehension of the likelihood of anti-competitive practices by an entity cannot be a subject of the probe. PTI