During the meeting, 99.9986% vote was cast in favour of the merger, while a fractional 0.0014% voted against the deal.
On BSE, PVR shares closed at ₹1,725 apiece up by 0.87%. The company's market cap is around ₹10,544.71 crore.
On the other hand, Inox shares closed at ₹503.40 apiece down by 0.32% on BSE. The company's market cap stood at ₹6,158.55 crore.
Inox in its regulatory filing announced that a meeting with equity shareholders of the company was held on October 12. Under the meeting, the proposed scheme of amalgamation of Inox with PVR and their respective shareholders and creditors was also brought for approval. The result of the voting will be disclosed probably this week.
Under the amalgamation scheme, shareholders of INOX will receive shares of PVR in exchange for shares in INOX at the approved share exchange (“swap") ratio. The share exchange ratio is 3 shares of PVR for 10 shares of Inox. Also, Ajay Bijli will become the Managing Director of the merged entity, and Pavan Kumar Jain to be the Non-Executive Chairman of the Board.
Post the merger, the promoters of INOX will become co-promoters in the merged entity along with the existing promoters of PVR. Upon effectiveness of the scheme, the Board of Directors 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, as per the regulatory filing on March 27.
The combined entity will be named PVR Inox while the branding of existing screens of PVR and Inox to continue respectively.
The merger will bring together two of India’s best cinema brands to deliver an unparalleled consumer experience with a network of more than 1500 screens.
