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28.03.2022 - 14:09 / deadline.com
PVR and INOX Leisure, two of the largest cinema operators in India, are merging to create a multiplex giant in the country.
The deal, which will be subject to regulatory approvals, would see the combined entity oversee more than 1,500 screens across 109 cities. PVR is India’s biggest chain with 850 screens, while INOX has around 650.
The agreement comes as both companies are attempting to emerge back to full strength following a pandemic-disrupted two years of closures and delayed releases. The outfits said it would help them both improve efficiency, reach new markets and optimize costs.
“The film exhibition sector has been one of the worst impacted sectors on account of the pandemic and creating scale to achieve efficiencies is critical for the long-term survival of the business and fight the onslaught of digital OTT platforms,” said PVR Chairman Ajay Bijli said in a statement.
It has been a tricky period for distributors and exhibitors in India, as it has been around the world, but there have been signs of recovery. This weekend, blockbuster pic RRR recorded the highest single-day opening since the pandemic began, according to local reports.
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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.