Inox Leisure Ltd, the Gujarat-based theatre chain, has increased its stake in Fame India Ltd to over 50%. The company bought 7.2% stake in rival Fame India Ltd through a block deal, two days after acquiring 43.3% in a similar way, it said in its filing to the Bombay Stock Exchange.
The fresh move is perhaps targeted at thwarting the possibility of a rival bid.
In early trade on the BSE today, Inox bought 2.5 million shares of Fame India in a block deal at a price of Rs 50.75 per share, it added. Inox will now make an open offer for an additional 20% stake considering the latest deal.
In a parallel development, Reliance Capital Partners, which owns as much as 9% stake in Inox Leisure, has reportedly sold 3.1 million shares of Inox Leisure. Meanwhile, it has bought a 3.4% stake in multiplex operator Fame India over the last two days from the open market.
The Reliance Capital move suggests the possibility of a counter offer from ADA Group, which was eyeing to acquire Fame India way back in 2007.
Reliance Capital is a part of the Anil Dhirubhai Ambani (ADA) Group, which operates India’s largest multiplex chain Big Cinemas.
On Wednesday, Inox has bought 43.3% stake in Fame India for Rs 66.48 crore. Fame India stocks were traded at Rs 50.8, up by Rs 2.4 or 4.96% at 2:20 pm in the BSE.
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