This was also confirmed by INOX with an identical application for approval.
An exchange clearance is a mandatory step in obtaining approval from the National Company Law Tribunal and other regulators for a merger scheme.
On March 27 this year, PVR and Leisure announced a merger deal to create the country’s largest multiplex chain with a network of more than 1,500 screens to expand opportunities in Tier III, IV and V cities, as well as in to open up to the developed markets.
The combined company will be known as PVR INOX Ltd, with existing screens continuing to be branded as PVR and INOX respectively. New cinemas opening after the merger will be branded as PVR INOX, the companies announced on March 27.
Under the terms of the agreement, INOX will merge with PVR at a share exchange ratio of 3 shares of PVR for every 10 shares of INOX.
After the fusion, the promoters from INOX together with the existing promoters from PVR become co-promoters in the fused entity.
PVR promoters will have a 10.62 percent stake while INOX promoters will have a 16.66 percent stake in the merged entity, it added.