Multiplex operator PVR on Wednesday said it has received approval from its shareholders for a merger plan with rival Inox Leisure.
Following the directions of the Mumbai Bench of the National Company Law Tribunal (NCLT), leading cinema exhibitors called a meeting of their shareholders on Tuesday. The investigator’s report of the meeting, shared by PVR, stated that the resolution was passed by over 99% of the number of valid votes.
In June this year, both PVR and Inox Leisure said that they have got approval for merger from NSE and BSE.
On March 27, PVR and Inox Leisure announced the merger to create the largest multiplex chain in the country with a network of over 1,500 screens to unlock opportunities in Tier III, IV and V cities besides developed markets.
The combined entity will be named PVR INOX Limited, with the existing screens branding to continue as PVR and INOX.
The new cinema halls opened after the merger will be branded as PVR INOX, the companies had said.
Earlier, the non-profit group CUTS had complained before fair trade regulator CCI that the proposed merger agreement would have an anti-competitive effect on the film exhibition industry and demanded a detailed investigation against both the entities.
However, the Competition Commission of India (CCI) had dismissed the complaint on September 13, holding that apprehension of possibility of anti-competitive practices by an entity cannot be the subject of investigation.