Inox acquires 43.28% in Fame India

Inox Leisure board has approved the purchase of 43.28 per cent in Shroff family promoted, Fame India for an all-cash deal of Rs 66.48 crore. Inox will buy up to 1,50,57,760 shares of Rs 10 each of Fame India, by way of a block trade in a single or multiple tranches. This acquisition will be followed by an open offer to buy another 20 per cent in Fame.

The transaction is entirely funded by Gujarat Fluorochemicals. Inox is the wholly owned subsidiary of Gujarat Fluorochemicals.

This acquisition will create the largest multiplex networks with a total of 55 multiplexes, 204 screens and 57,891 seats.

Deepak Asher, director, Inox Leisure said, "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."

Enam Securities was the investment banker and Khaitan & Co was the legal advisor to Inox. Yes Bank was the investment banker for Fame India and Naik Naik & Co was the legal advisor.

Inox currently owns 30 operational properties, 109 screens with 31,401 seats across 21 cities. Fame has 25 operational multiplexes, 95 screens and a seating capacity of 26,487 in 12 cities. Fame also has subsidiaries like Big Picture Hospitality Services, its food business joint venture; Headstrong Films, a film production joint venture and Shringar Films, a film distribution business.

Inox had earlier bought Calcutta Cine, a Bengal Ambuja Company. This acquisition had given additional nine multiplexes to Inox in West Bengal and Assam.