Inox makes Fame a subsidiary company
Inox Leisure Ltd. Buys Additional 7.21% Stake In Fame India Ltd.
Move will convert Fame India into an INOX subsidiary
Mumbai, 5th February 2010: INOX Leisure Ltd. today announced that it has purchased an additional 7.21% holding in Fame India. Coming on the heels of the 43.28% acquired by it on 3rd February 2010, INOX now effectively owns 50.48% of Fame India. This move will make Fame India a subsidiary of INOX.
The transaction representing 25,07,537 equity shares of Rs 10 each of Fame India Limited, amounting to 7.21% of the total paid-up capital of the company, was acquired for a consideration of Rs. 50.75 per share, totaling to Rs. 12.77 crores, through a block deal on the Bombay Stock Exchange.
This investment for the additional stake, takes the total investment by INOX till date in acquiring 50.48% stake in Fame to Rs. 79.25 crores. The additional stake has also been funded to INOX by its parent company Gujarat Fluorochemicals Ltd. (GFL).
An Open Offer for an additional 20% stake in Fame to the Shareholders of Fame India Limited in accordance with SEBI Regulations will follow.
Mr. Deepak Asher, Director – INOX Group of Companies said, “This additional acquisition has been in pursuance of our objective to consolidate our stake in Fame. The Open Offer to the Shareholders of Fame India Limited, in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, shall be made considering this additional purchase.”
The combined strength of INOX & Fame will create one of India’s largest multiplex networks with 55 multiplexes, 204 screens and a total seating capacity of 57888 seats.