India's largest multiplex chain PVR is in talks for a Rs 13,600-crore merger deal with rival Cinepolis India, The Economic Times has reported.
The deal is “moving quickly toward fruition” and will result in the combined behemoth owning more than 1,200 screens, the report quoted sources as saying.
The number of screens run by the next biggest entity, INOX Leisure, is just about half of what the merged company would operate.
“While the finer details are being worked upon, Cinépolis will be the largest shareholder in the merged company, with around a 20% stake,” the report quoted sources as saying.
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“PVR promoters will own between 10% and 14%, but Ajay Bijli (CMD of PVR) will have complete management control for at least three years. Cinépolis will have board seats in the merged company.”
Another executive said the merger could be announced by the end of March.
“Both parties are moving quickly,” said the second executive cited above. “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.”
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