In a major twist, India’s leading multiplex chain PVR, which was earlier in advanced talks with the local unit of Mexican company Cinépolis for a possible merger, has decided to combine operations with the second largest multiplex chain, INOX Leisure.
The boards of the two companies are meeting on Sunday, March 27, to approve the merger, said two people with direct knowledge of the development.
The deal will reshape the country’s film exhibition industry that witnessed its first phase of consolidation over the past decade and a half.
PVR and INOX Leisure combined will own over 1,500 screens across India.
The number of screens run by the next biggest entities, Carnival Cinemas and Cinepolis India, is around 450 and 417, respectively.
As per the first person, INOX Leisure will be the largest shareholder in the merged company, and the promoter will likely be the chairman of the board of the merged company.
Meanwhile, Ajay Bijli, CMD of PVR, will be the managing director, and will continue to run the operations with full management control.
The merger will likely not require approval from the Competition Commission of India as the combined revenues of the two companies are well below Rs 1,000 crore due to Covid-led disruptions.
Await detailed report…
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