Inox Leisure-Satyam Cineplexes deal gets no-objection from NSE

The National Stock Exchange has given clearance to the Rs 182-crore merger of Gurgaon-based Satyam Cineplexes Ltd with multiplex chain Inox Leisure.

The 'no-objection' from the exchange would allow the two companies to file their scheme of amalgamation with the High Court for further clearance of the deal.

Under the deal, Mumbai-based exhibitor will acquire 100% equity share capital of Satyam from its promoters for a total consideration of Rs 182 crore.

The merger will strengthen Inox Leisure presence in North India.

In a communication to Inox Leisure, NSE last month said that it is granting its 'no-objection approval' to the proposed scheme and this observation letter would be valid for six months, within which period the companies would have to file the scheme with the High Court for further clearance.

The exchange has noted the confirmation given by the company stating that the scheme does not violate or over-ride or circumscribe the provisions of various regulatory norms.

"Accordingly, we do hereby convey our 'no-objection' with limited reference to those matters having a bearing on listing/ delisting/ continuous listing requirements within the provisions of the Listing Agreement, so as to enable the Companies to file the Scheme with High Court," NSE said.

According to norms, companies seeking to execute merger or de-merger strategies need to obtain a 'no-objection certificate' from stock exchanges.

Post acquisition, Inox would be present in 50 cities with 91 multiplexes and 358 screens. The company is catching up with market leader PVR Cinemas, which has 400 screens across the country.

This is the third acquisition of Inox in last seven years. Earlier it had acquired Kolkata's Calcutta Cine Pvt Ltd and Fame India Ltd.