Multiplex chains PVR and Inox Leisure have moved the National Company Law Tribunal (NCLT) to seek the insolvency board’s approval for the proposed merger between the two companies. As per the regulations, the companies have to take approval from their respective shareholders, regulators such as the Competition Commission of India (CCI) and the SEBI, statutory authorities such as the Ministry of Corporate Affairs (MCA) and the revenue department as also lenders before the NCLT gives its final nod to the merger scheme.
The NCLT’s Bombay bench has posted the hearing of the application for the merger and final approval for December 15. Meanwhile, the merger is likely to be completed in the last quarter of financial year 2023.
The boards of the two companies had in March this year approved an all-stock amalgamation of Inox with PVR. The CCI on September 14 rejected a complaint against the proposed merger of PVR and Inox, saying that mere apprehension of the likelihood of anti-competitive practices by an entity cannot be a subject of a probe.
PVR currently operates 871 screens across 181 properties in 73 cities. Inox has 675 screens across 160 properties in 72 cities. The largest exhibition company in India after the merger will operate 1,546 screens across 341 properties in 109 cities.