PVR and INOX said they would merge into a theater chain with more than 1,500 screens.
Bengaluru:
Shares of India’s PVR and INOX Leisure rose 10%-20% on Monday after the country’s two largest multiplex operators said they would merge to create a theater chain with more than 1,500 screens.
INOX will merge with PVR in an all-stock deal, with INOX shareholders receiving three shares of PVR for every 10 shares of INOX, the companies said in a regulatory filing on Sunday.
INOX stocks rose as much as 20% to hit a record high of 563.6 rupees, while the PVR rose 10% to its highest point in more than two years.
PVR and INOX said the merger, which is subject to regulatory approval, would help both companies improve efficiencies, reach newer markets and optimize costs.
