Thread by @bhavikkrshah

PVR, Inox Leisure agree for merger in the ratio 3:10 , will become India's largest chain. Merger subject to approvals
CMP #PVR 1828
CMP #INOXLEISUR 470

Deal good for Inox as merger happens at ~Rs 550 per share, 17% premium to CMP as per current calculations

#INOXLEISUR is the 2nd largest multiplex player in India with 79 properties, 310 screens & 83,809 seats with 15% Bollywood and 25-30% Hollywood market share.
#PVRInox #PVR #INOXLEISUR

#PVR currently operates 860 screens at 179 properties in 73 cities in India & Sri Lanka. It has formats in the premium screen category, including Director's Cut, LUXE, Sapphire, IMAX, 4DX, P[XL], Playhouse and PVR Onyx across the country.
#pvrcinemas #PVR #PVRInox

Currently, PVR has a 32% mkt share in the Hollywood segment & 24% in the Hindi. PVR's overall market share is 20%. It owns 28% of all multiplex screens in India. You might have got a brief overview of the company till now. With merger this will change drastically in favour of PVR

India is still a under screen market. India has 8 screens per 1 million people (1 million = 10 lakh) whereas in China it is 42 screens per million and 120 screens per million in USA, so there's lots of potential in Indian exhibition market)

#PVR current mkt price ₹ 1822
#inoxleisure current market price ₹ 470
Share swap ratio: 3 sh of PVR for 10 Shares of Inox
Premium for Inox = (3x 1822) - (10x 470) ÷ 10 = ₹ 77 premium (16%) to Inox shareholders

After this merger India's total screen will be 9500
#PVRInox will held 1516 (871+675)
#Carnival has 450 screens
#cinepolis has 360 screens
#Miraj has 147 screens

Country wise #China has largest 82,000 screens
#USA has 44,000 screens
#India now has 9,500 screens.
#pvrinoxmerger #pvrcinemas

#PVR has always been front runner in acquisition in 2012 PVR did its first acquisition of Cinemax Cinema at ₹ 395 Cr
DLF DT cinema at ₹ 500 Cr in 2016
SPI Cinema at ₹ 850 Cr in 2018
& now merger with Inox at around ₹ 6500 cr Valuation
#inoxleisure