Rel Media makes public offer for 52.48% in Fame India

The Anil Ambani-led Reliance MediaWorks today made an public offer to buy an additional 52.48 per cent stake in the multiplex chain operator Fame India for about Rs 180.14 crore, countering an existing takeover bid by rival Inox Leisure.

Recently, Inox Leisure had signed an agreement to acquire 43.28 per cent promoter's stake in Fame India and earlier this month made an open offer to buy another 20 per cent stake, at a price of Rs 51 per share.

At present, three Anil Ambani group firms--Reliance MediaWorks, Reliance Capital Partners and Reliance Capital-- together hold about 10.26 per cent stake in Fame.

In a public notice, Reliance MediaWorks said it would make an open offer to acquire 52.48 per cent in Fame India.

Sources said the decision to make the open offer was made at a board level meeting held yesterday.

When contacted, a ADAG spokesperson declined to comment.

The open offer is made for 2.16 crore shares at a price of Rs 83.40 per piece, much higher than that offered by Inox.

Interestingly, Inox's open offer for 20 per cent additional stake in Fame is priced at Rs 51 per share. Inox has 42.68 per cent shareholding in the multiplex chain operator.

Once the open offer is completed, Reliance group would have a total stake of 62.74 per cent in Fame India.

Earlier this month, Reliance MediaWorks had said it would seek action against Fame for selling promoters' stake in the theatre chain to Inox at a price much lower than it had offered earlier.