The recent acquisition of over 50 per cent shares in multiplex chain Fame India by INOX Leisure has come under fire.
Reliance Mediaworks, the entertainment arm of the Anil Dhirubhai Ambani Group (ADAG), has shot off a letter to Fame India protesting the sale of shares to Inox Leisure at Rs 44 per share. Reliance Mediaworks claims it had offered to buy a stake in Fame at Rs 80 per share.
Anil Arjun, CEO at Reliance Mediaworks, admits that Fame reserves the right to sell is 43.28 per cent stake to anyone, but in this instance minority shareholders have lost out by the refusal of the ADAG offer.
The company says the deal also flouts SEBI’s acquisition code, but it has so far not lodged any complaint with the market regulator.
Inox Leisure had on February 4 purchased an additional 7.21 per cent holding in Fame India, taking its total stake to 50.48 per cent in Fame India.
The transaction representing 25,07,537 equity shares of Rs 10 each was at Rs 50.75 per share, through a block deal on the Bombay Stock Exchange.
Today Inox shares closed at Rs 76.95, a 3.02 per cent decline while Fame India shares went up by almost five per cent, closing at Rs 55.95.