PVR, INOX Leisure climb on buzz CCI rejects complaint against proposed merger

14 Sep 2022 , 10:03 AM

INOX Leisure (up 4.36%) and PVR (up 2%) jumped. Meanwhile, the Nifty 50 index fell 162.80 points, or 0.9%, at 17,907.25. The media reported that the Competition Commission of India (CCI) on Tuesday (13 September) rejected a complaint against the proposed merger of PVR and INOX Leisure, saying apprehension of likelihood of anti-competitive practices by an entity cannot be a subject of probe. Non-profit group CUTS had complained that the proposed merger agreement would have anti-competitive effects on the film exhibition industry and sought a detailed probe against the two entities. The board of PVR and INOX Leisure on 27 March 2022, approved an all stock amalgamation of INOX with PVR. Upon obtaining all approvals, INOX will merge with PVR. INOX shareholders will receive 3 shares in PVR for 10 shares of INOX. Post the merger, PVR promoters will have 10.62% stake while INOX promoters will have 16.66% stake in the combined entity. The board of the merged company would be re-constituted with total board strength of 10 members and both the promoter families having equal representation on the board with 2 board seats each. Ajay Bijli would be appointed as the managing director and Sanjeev Kumar would be appointed as the executive director. Pavan Kumar Jain would be appointed as the non-executive chairman of the board. Siddharth Jain would be appointed as non-executive non-independent director in the combined entity. The combined entity will be named as PVR INOX with branding of existing screens to continue as PVR and INOX respectively. New cinemas opened post the merger will be branded as PVR INOX. The combined entity will become the largest film exhibition company in India operating 1546 screens across 341 properties across 109 cities. The companies said that merger offers compelling revenue and cost synergies. On a consolidated basis, Inox Leisure reported net profit of Rs 57.09 crore in Q1 June 2022 as against net loss of Rs 122.28 crore inb Q1 June 2021. Net sales soared to Rs 582.26 crore in Q1 June 2022 as against Rs 22.31 crore in Q1 June 2021. On a consolidated basis, PVR reported net profit of Rs 53.38 crore in Q1 June 2022 as against net loss of Rs 219.44 crore in Q1 June 2021. Net sales soared to Rs 981.40 crore in Q1 June 2022 as against Rs 59.39 crore in Q1 June 2021. Powered by Capital Market – Live News