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| Reliance MediaWorks raises stake in Fame |
| BS Reporter / Mumbai Feb 10, 2010, 00:12 IST |
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Plans to move regulators against the theatre chain.
Reliance Capital Partners, an Anil Dhirubhai Ambani Group company, today upped the ante against Fame India by raising its stake in the latter to 7.89 per cent from 6.25 per cent. The Group also threatened regulatory action against the theatre chain.
In a release issued today, Reliance MediaWorks, the holding company of BIG Cinemas, said it would bring all relevant facts to the notice of all regulatory authorities, including the Securities and Exchange Board of India (Sebi), the Ministry of Corporate Affairs, the Reserve Bank of India and the Income Tax Authorities.
A company spokesperson said, “The issues involved are nowhere as simple as acceptance of a higher or lower price by the sellers, but far more complex.” He alleged it involves serious matters relating to suppression of material facts, violations of the Sebi Takeover Code and Sebi Fraudulent & Unfair Trade Practices Regulations, the fiduciary duties of promoters of listed companies and protection of the interests of minority shareholders.
When contacted, Fame Managing Director Shravan Shroff refused to comment on the matter. In an earlier conversation with Business Standard, Shroff had said that he had not received any written offer from Reliance MediaWorks.
Reliance MediaWorks had earlier accused Fame India’s promoter, Shravan Shroff, of rejecting Reliance’s higher offer to acquire stake in the latter. Reliance claims to have offered Rs 80 per share to acquire the promoter’s 43.28 per cent stake.
INOX Leisure acquired the promoter’s 43.28 per cent stake for Rs 66.48 crore (Rs 44 per share).
The Fame stake buy makes INOX the second largest multiplex in the country, with over 205 screens (including Fame’s 95 screens), after Big Cinemas which operates 242 screens in India.
Fame scrips advanced 5 per cent to Rs 58.70 on the Bombay Stock Exchange.
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