Mumbai: PVR and Inox Leisure on Tuesday disclosed that the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have given their clearance with regards to the scheme of amalgamation or merger deal between the two companies.

The decision to merge was first proposed on 27 March before the board of directors of the two companies. The combined entity called PVR-Inox would become the largest film exhibition company in India operating 1546+ screens.

Post the merger, the promoters of Inox will become the co-promoters in the merged entity along with existing promoters of PVR. The board of directors of the merged company will be reconstituted with a total board strength of 10 members & both the promoter families having equal representation on the board with two seats each. PVR promoters will have 10.62 percent stake while Inox promoters will have 16.66 percent stake in the combined entity

PVR chairman Ajay Bijli will lead the combined entity as managing director. Sanjeev Kumar will be appointed as the executive director. Pavan Kumar Jain will be appointed as the non-executive chairman of the board. Siddharth Jain will be appointed as non-executive non-independent director in the combined entity.

When the merger becomes effective, shareholders of Inox will receive shares of PVR in exchange for shares in Inox at the approved share swap ratio. Inox shareholders will receive three shares in PVR for 10 shares of INOX.

The merger will be an all-stock amalgamation subject to approval of the shareholders of PVR and Inox respectively, stock exchanges, SEBI and such other regulatory approvals as may be required.