Reliance Media unable to digest Inox's Fame

Anil Dhirubhai Ambani Group's Reliance MediaWorks (RMW) has jumped into the Inox-Fame acquisition with a hostile counter-bid to acquire a majority stake in multiplex chain operator Fame India, in a bid to thwart rival Inox Leisure from becoming the largest multiplex chain operator in the country.

RMW said that it would make an open offer to acquire 52.48 per cent in Fame India at Rs83.40 per share for approximately Rs180.14 crore.

The offer represents a 63.5-per cent premium to the existing takeover bid by Inox Leisure to Fame shareholders.

On 3 February, Mumbai-based Inox Leisure Limited, operator of a chain of multiplexes across the country and a subsidiary Gujarat Flurochemicals, acquired 43.28 per cent in the Shroff family-promoted Fame India Ltd for Rs66.48 crore to become the largest owner of multiplexes in the country. (See: Inox becomes India's largest multiplex operator with Fame stake acquisition)

Two days later, it bought an additional 7.21 per cent in a block deal for Rs12.77 crore to take its total holding in Fame to 50.49-per cent at a total cost of Rs79.25 crore. (See: Inox Leisure hikes stake in Fame India by 7.21 per cent)

Inox had said at that time that it would make an open offer for an additional 20 per cent stake to the shareholders of Fame India in accordance with SEBI Regulations soon.