Multiplex Chain PVR’s Shareholders Approve Merger With Rival INOX
PVR, India’s biggest multiplex operator, announced yesterday that it had received a nod from its shareholders to go ahead with the 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 merger proposal was passed by over 99% of the valid votes cast, as per NCLT’s report of the meeting, shared by PVR.
PVR’s Shareholders Approve Merger With Rival INOX
Earlier in June this year, both PVR and Inox had said that they had received clearance for their merger from the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange).
As per PTI, on March 27, PVR and Inox announced a merger to create the largest multiplex chain in India 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 post merger will be named PVR INOX Ltd., with the branding of existing screens to continue as PVR and INOX.
According to reports, new cinemas that open following the merger will be branded as PVR INOX.
Complaint Against The Merger
Earlier, the non-profit group CUTS (Consumer Unity & Trust Society) had complained before the fair trade regulator, the Competition Commission of India (CCI) that the proposed merger agreement would have anti-competitive effects on the film exhibition industry and sought a detailed probe against the two entities, as per the report.
However, last month the CCI, on September 13, rejected the complaint saying apprehension of the likelihood of anti-competitive practices by an entity cannot be a subject of the probe.
Aim To Generate Pre-Pandemic Revenues This Quarter
In July this year, PVR’s CEO, Gautam Dutta, mentioned that the movie chain has raised the prices of tickets by up to 23% amid high inflation, a rise in the cost of labour and redevelopment costs. He added that the company also expects to generate pre-pandemic level advertising revenues by Q3 FY23, i.e. in this Oct-Dec quarter, as it plans to roll out new ways of audience engagement within theatres.
Also Read: 10 Hollywood Stars Who Have Invested In Their Tequila Brands
For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here.
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.