Inox retains control over Fame after open offer

Multiplex chain Inox Leisure Ltd has disclosed that though it had acquired only 1,075 shares in rival Fame India in its open offer for 8.23 million shares, it has managed to retain majority control.

Fame has been embroiled in a takeover battle between Inox and rival Reliance MediaWorks (an Anil Ambani-led company) since the beginning of 2010. (See: Inox, Reliance MediaWorks to make open offers for Fame India on 16 December)

Inox had made an open offer for 20.25 per cent of the fully diluted share capital of the company at Rs51 a share. On the other hand, Reliance MediaWorks (RMW) had proposed to acquire 2.17 crore Fame India shares, representing a 53.38-per cent stake, at Rs83 per share.

In a filing with the Bombay Stock Exchange, Inox said it had transferred 1.5 crore shares from an escrow account after the offer and its total shareholding in Fame India currently stood at 50.27 per cent.

It is not certain how many shares RMW managed to acquire through its open offer, as the company remained tight-lipped. However, media reports suggest it has acquired 32 per cent in the open offer that closed on 4 January.

Before the open offers were made, Inox held around 50.2 per cent stake in Fame India, while RMW had a 16-per cent stake via Reliance Capital.