Inox becomes India's largest multiplex operator with Fame stake acquisition
03 February 2010
Inox Leisure Limited, operator of a chain of multiplexes across the country and a subsidiary Gujarat Flurochemicals, is acquiring 43.28 per cent in Fame India Ltd for Rs66.48 crore to become the largest owner of multiplexes in the country.
Mumbai-based Inox bought the stake from the Shroff family-promoted Fame India (Fame), owner of the chain of Fame Multiplexes by acquiring 1,50,57,760 Fame India shares of Rs10 each in a block deal executed through the Bombay Stock Exchange.
Inox will follow up on its stake acquisition with an open offer to acquire an additional 20 per cent stake for cash as required by the regulator.
This acquisition will propel Inox to become the largest multiplex chain operator in the country with 55 multiplexes, 204 screens and 57,888 seats.
INOX currently operates 30 multiplexes and 109 screens with 31,401 seats in 21 cities, while Fame India operates 25 multiplexes, 95 screens with 26,487 seats in 12 cities.
INOX Leisure aims to keep Fame as a separate entity and after acquiring additional shares, will make it a subsidiary.
Deepak Asher, director of the INOX Group of Companies said, ''It has been our stated goal, when we launched our first multiplex around 8 years back, to be a significant player in the Indian multiplex space and redefine the movie going experience in India. This philosophy, of being a market leader, runs across all our businesses. Today, we are pleased to announce to our stakeholders, that we have translated this vision into reality - we have one of India's largest network of multiplex screens and have truly raised the bar in providing a world class cinema experience to our patrons.''
''Over the next few months, we will evaluate the full benefits of integration and consolidation, to drive competitive advantage across the value chain, and consider our strategic options in accordance with regulatory guidelines. We welcome the Fame team to the INOX family, and look forward to working with them to ensure a rapid and seamless transition,'' he added.