Mumbai: Multiplex operator PVR has received shareholders' approval for its proposed merger with Inox Leisure. 99.9986 per cent voted in favour of the merger. It was defeated by a margin of 0.0014 per cent.
Inox, in a filing, said that a meeting with equity shareholders took place. The company sought approval for the proposed merger. The results of the vote are expected to be announced in the coming days.
The Inox said, "A meeting of the equity shareholders of the company was held on 12 October 2022 at 12 p.m. through video conferencing (VC)/other audio visual means (OA VM) as per the directions issued by the National Company Law Tribunal, Mumbai Bench, vide its order dated 22 August, 2022 and in compliance with the applicable provisions of the Companies Act, 2013 read with rules made thereunder, circular(s) issued by the ministry of corporate affairs and the Securities and Exchange Board of India, for transacting the business mentioned in the notice dated 10 September 2022 convening the said meeting (NCLT Convened Meeting). "
In March, the two companies announced plans for a merger. Inox had said the merger would bring together two of India's best cinema brands to deliver an unparalleled consumer experience with a network of more than 1,500 screens.
Following the merger, Inox promoters will join the existing PVR promoters as co-promoters of the merged entity. According to the regulatory filing on 27, once the scheme is implemented, the board of directors of the merged company will be reconstituted with a total board strength of 10 members and equal representation on the board for both promoter families with two board seats each.
The company will be called PVR Inox, with the branding of existing screens to continue as PVR and Inox, respectively. Ajay Bijli will be the managing director and Sanjeev Kumar Bijli will be the executive director. Pavan Kumar Jain will be the non-executive chairman of the board.
Shareholders of Inox will get PVR shares in a pre-approved "swap" ratio of 3:10. Three equity shares of PVR can be swapped for 10 of Inox. Inox will have a 16.66 per cent stake and PVR will have a 10.62 per cent stake in PVR Inox.