Media reports indicate PVR in merger talks with Cinepolis IndiaPVR - 1790 Change: 50.30 (2.89 %)
News: According to The Economic Times, PVR and Cinepolis India are in advanced merger talks. The report further says, post the merger Cinepolis will be the largest shareholder in the merged company, with around 20% stake. PVR promoters will own between 10% and 14%, with Ajay Bijli (CMD of PVR) having complete management control for at least three years. Cinepolis will have board seats in the merged company.
Views: We highlight that the merged entity with ~1240 screens (excluding Cineline) will have a massive ~39% screens share in the multiplex space in India (~3200 screens). While the report says no CCI approval may be needed given less than | 1000 crore revenues last year, the combined entity could exceed 50% screen share in some key markets including NCR and thus, some possible roadblocks is likely. The fructification of deal, however, will give PVR Cinepolis combine a huge advantage in terms of ad revenues monetisation as well as distribution bandwidth.