Multiplex operators PVR and INOX Leisure may move closer to create the largest multiplex chain in the country with a crucial meeting of shareholders and creditors scheduled on October 11.
PVR has called a meeting of its shareholders and creditors on October 11 to seek their approval for the scheme of mega merger, pursuant to the order of the National Company Law Tribunal’s Mumbai Bench, according to a stock exchange notification.
The meeting of the equity shareholders will be held through video conferencing or other audio visual means at 11:30 a.m. and the meeting of secured creditors of the company will be held physically at the company’s registered office in Mumbai at 3:00 p.m.
The two entities had announced the merger plan on March 22 and the merged company will be called PVR Inox. However, the branding of existing screens will continue as PVR and INOX. New theatres opened following the merger will be branded as PVR INOX.
They had received clearance for the merger from the bourses in June, which is mandatory to get clearance from the NCLT and other regulatory authorities.
As PVR is bigger and has more premium multiplexes among the two companies, the boards of the companies decided that the shareholders of Inox Leisure would receive 3 stocks of PVR for every 10 stocks of Inox they hold.
