Wednesday, January 5, 2011

Reliance MediaWorks hikes stake to 44% in Fame India

Anil Ambani-promoted Reliance MediaWorks has acquired 32% of Emerging Equity in Fame India via open offer, reports CNBC-TV18's Tanvi Shukla quoting sources. Earlier Reliance Media held 12% of Emerging Equity in Fame India.

It has been a tough fight between Inox and Reliance MediaWorks to acquire Fame India. Post, market regulator SEBI’s clearance to both the open offers i.e. Inox and Reliance MediaWorks for Fame India, the latter is learnt to have pocketed the stake.

It is learnt that Reliance made an open offer to acquire 53.8% stake in Fame India with an open offer price of Rs 83.40 per share.  Rival Inox holds 50.2% stake in the multiplex company.

The takeover battle for Fame began in February when Reliance MediaWorks launched a hostile bid. It accused Fame of rejecting its higher offer price in favour of Inox and petitioned SEBI that the deal was against the “protection of the interest of minority retail shareholders.”

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