Inox eyes 20pc in Fame, ADAG objects Feb 3 buy
Mumbai, Feb 8: Inox Leisure Ltd, which already holds 50.48 percent stake in the Fame India Ltd, is eyeing 20 percent of equity capital in cinema chain.
The multiplex chain has made an open offer to acquire 20 percent of equity capital, or 8.23 million shares, in Fame India at a price of 51 rupees per share.
In a filing to the stock exchange on Saturday, Feb 6, the offer manager, Enam Securities said the open offer will begin on Apr 1 and close on Apr 20.
Inox purchased the 50.48 percent stake in the Fame India at a cost of 792.5 million rupees.
Reliance MediaWorks protests acquisition
On Wednesday, Feb 3 Inox acquired a 43.28 per cent stake in Fame Cinemas for Rs 66.48 crore.
The acquisition of Fame India Ltd by INOX Leisure at a price of Rs 44 per share is reportedly seeing objection from Reliance MediaWorks, the entertainment arm of the Anil Dhirubhai Ambani Group (ADAG).
According to a report in Economic Times, Reliance MediaWorks is protesting against the acquisiton citing that the price was lower than a competing bid from it. Reliance Media Works had offered a higher price of Rs 80 per share.
Even though the company admits that the owners of Fame India had the right to sell their 43pc stake to whoever they wanted, the company notes that this adversely affected minority shareholders as they had rejected the higher offer.
The Feb 3 buy out made Inox the country's second largest multiplex operator after BIG Cinemas, which is a division of Reliance MediaWorks Ltd.