Reliance joins buyout war for fame | business | Hindustan Times
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Reliance joins buyout war for fame

Anil Ambani-led Reliance MediaWorks on Sunday made a public offer to buy an additional 52.48 per cent stake in multiplex chain operator Fame India for about Rs 180 crore. Reliance’s offer counters an existing takeover bid by rival Inox Leisure.

business Updated: Feb 21, 2010 21:57 IST

Anil Ambani-led Reliance MediaWorks on Sunday made a public offer to buy an additional 52.48 per cent stake in multiplex chain operator Fame India for about Rs 180 crore. Reliance’s offer counters an existing takeover bid by rival Inox Leisure.

Recently, Inox Leisure had signed an agreement to acquire 43.28 per cent promoter’s stake in Fame India and made an open offer earlier this month to buy another 20 per cent stake, at a price of Rs 51 per share.

At present, three Anil Ambani group firms — Reliance Mediaworks, Reliance Capital Partners and Reliance Capital — together hold about 10.26 per cent in Fame.

In a public notice, Reliance MediaWorks said it would make an open offer to acquire 52.48 per cent in Fame India.

According to sources, the decision to make the open offer was made at a board meeting on Saturday. An ADAG spokesperson declined to comment.

The open offer is made for 2.16 crore shares at a price of Rs 83.40 per share, much higher than that offered by Inox.

Interestingly, Inox’s open offer for 20 per cent additional stake in Fame is priced at Rs 51 per share. Inox has 42.68 per cent shareholding in the multiplex chain operator.

Reliance MediaWorks had previously said it would seek action against Fame India for selling promoters’ stake in the theatre chain to Inox at a price much lower than its own offer.