“We would like to inform you that the Honorable National Company Law Tribunal (NCLT), Mumbai Bench, has authorized the proposed scheme today i.e. 12th January 2023. A copy of the detailed order is awaited and the same will be disclosed to the stock exchanges upon receipt by the company,” he said. PVR on file to BSE.
Once the NCLT releases the detailed application copy, the two companies will file the same file with regulatory authorities such as the Registrar of Companies (RoC) and stock exchanges. The share allocation is expected to be completed in the next few weeks.
“The written order version of NCLT will be submitted to regulators and PVR shares will be allocated to Inox shareholders in the coming weeks. The merger will conclude with a share allocation,” said a source close to the development.
In its prior hearing on December 15, NCLT posted the case for the PVR-Inox merger application for a final hearing on January 12, 2023.
PVR and Inox Leisure moved NCLT to seek court approval for a proposed merger of the two cinema chains.
Earlier, the not-for-profit public policy and advocacy group Consumer Unity & Trust Society (CUTS) moved the National Corporations Act Court of Appeal (NCLAT) against the Competition Commission of India (CCI) order on the PVR-Inox merger deal. — The House member adjourned the case, which also has PVR and Inox as parties, to Feb. 9.
In September, CCI dismissed CUTS’ complaint against the merger between PVR and Inox Leisure. The competition watchdog then stated that the apprehension of a possible material negative impact on competition (AAEC) by an entity that had not yet taken shape could not be the subject of an investigation/investigation.
The CCI also stated that it would examine the matter under the provisions of competition law if, in retrospect, any issue of abusive conduct emerged.
Under the all-stock merger deal, Inox will merge with PVR. The promoters of Inox will become co-promoters of the combined entity along with the existing promoters of PVR.
The combined entity will become the largest film gallery company in India.