India’s leading multiplex chain PVR and the local unit of Mexican company Cinepolis are in advanced merger talks, according to a report.
The transaction is "moving quickly toward fruition” and would result in the merged giant owning more than 1,200 screens, The Economic Times quoted sources as saying.
“While the finer details are being worked upon, Cinepolis will be the largest shareholder in the merged company, with around a 20 percent stake,” the publication quoted a source as saying.
“PVR promoters will own between 10 percent and 14 percent but Ajay Bijli (CMD of PVR) will have complete management control for at least three years. Cinepolis will have board seats in the merged company,” the report said.
“Both parties are moving quickly,” the report cited the second executive as saying. “This merger will not require approval from the Competition Commission of India as the combined revenues of the two companies are well below Rs 1,000 crore due to Covid-led disruptions.”
PVR operates 846 screens in 176 cinemas in 71 Indian and Sri Lankan cities, with a total seating capacity of 182,000. Cinepolis India has 417 screens spread across 93 properties in 61 locations in 22 states.
The combined company will have 1,263 screens spread over 269 sites. Rival INOX Leisure, on the other hand, has 160 multiplexes and 675 screens in 72 cities.
At 11.22 am, the PVR stock was trading at Rs 1,543.25, down Rs 22.30, or 1.42 percent, on the NSE.
Also Read: Indian rupee slumps 81 paise to 76.98 against US dollar in early trade
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
