PVR in advanced merger talks with Cinepolis India: Report

Mutiplex chain PVR is reportedly in advanced talks for a merger with the local unit of the Mexican cinema distribution company Cinepolis.

The merged companies will own over 1,200 theatres if the deal succesfully goes through, The Economic Times reported citing people with knowledge of the matter.

“Cinépolis will be the largest shareholder in the merged company, with around a 20 per cent stake, though the finer details are being worked upon," one of the sources told the publication.

"PVR promoters will own between 10 per cent and 14 per cent, 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," the source added.

The deal is expected to come through by the end of March, according to an executive.

“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," the executive added.

DH could not independently verify the report.

PVR currently operates a cinema circuit comprising of 860 screens at 179 properties in 73 cities in India and Sri Lanka. Meanwhile Cinepolis operates 360 screens under the brand names of Cinépolis, Cinépolis VIP, and Fun Cinemas.

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