Combined network of INOX & Fame multiplexes emerges as India’s leading multiplex chain
Mumbai, 3rd February 2010: The Board of Directors of INOX Leisure Ltd. (INOX), promoted by Gujarat Fluorochemicals Ltd. (GFL), today announced that it has acquired 43.28% stake in the Shroff family promoted Fame India Ltd. (Fame), which owns the chain of Fame Multiplexes. The acquisition creates one of India’s largest multiplex networks with a combined strength of 55 multiplexes, 204 screens, and a total seating capacity of 57,891 seats. Fame also has subsidiaries such as Big Picture Hospitality Services - its food business JV, Headstrong Films - its film production JV and Shringar Films, its film distribution business.
In a block deal executed through the BSE today, INOX bought 43.28% stake owned by the promoter family of Fame, for an all-cash consideration of Rs. 66.48 crores. The transaction is entirely funded by INOX’s promoter company, GFL as a shareholder loan.
This acquisition shall be followed by an open offer to acquire a further 20% stake in Fame, for cash, as per SEBI regulations.
Speaking on the occasion, Mr. Deepak Asher, Director – INOX Group of Companies said, “It has been our stated goal, when we launched our first multiplex around 8 years back, to be a significant player in the Indian multiplex space and redefine the movie going experience in India. This philosophy, of being a market leader, runs across all our businesses. Today, we are pleased to announce to our stakeholders, that we have translated this vision into reality - we have one of India’s largest network of multiplex screens and have truly raised the bar in providing a world class cinema experience to our patrons.”
”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. We welcome the Fame team to the INOX family, and look forward to working with them to ensure a rapid and seamless transition.”
Mr. Alok Tandon, CEO – INOX Leisure Ltd. said, “INOX has always been, and will continue to be, a professionally managed company. We are extremely proud of our human resources who have helped create this formidable brand in the multiplex space, and we are sure this team will be strengthened by the infusion of fresh talent from the Fame team as well. Going forward, all our energies will be focused on managing this integration, planning for further growth and strengthening our position as India’s leading multiplex chain.”
Mr. Shravan Shroff – Managing Director, Fame India Ltd. said, “I have always believed that a consolidated play would have a strategic advantage in the business and that led us to consider this association with INOX. Our decision was driven by our belief in INOX’s professional management and strong shareholder focus, which we believe would translate into a value add for all Fame stakeholders. We are proud of having been associated in creating India’s largest multiplex network, which we believe will offer an unparallel reach to film producers and consumers.
INOX had previously acquired Calcutta Cine Pvt. Ltd. (CCPL) a Bengal Ambuja company. The acquisition, which kick started the consolidation phase in the multiplex industry gave INOX access to an additional 9 multiplexes in West Bengal and Assam.
INOX currently has 30 operational properties, with 109 screens and a seating capacity of 31401 in 21 cities across India. Fame has 25 operational multiplexes with 95 screens and a seating capacity of 26487 in 12 cities.