Inox acquires 43 percent stake in Fame
By IANSWednesday, February 3, 2010
KOLKATA - Gujarat Fluorochemicals Ltd (GFL)-promoted Inox Leisure Wednesday said it has acquired a 43 percent stake in Fame India that owns the Fame multiplex chain.
“In a block deal executed through the BSE (Bombay Stock Exchange) today, INOX bought 43.28 percent stake owned by the promoter family of Fame, for an all-cash consideration of Rs.66.48 crore,” the company said in regulatory statement.
“The transaction is entirely funded by INOX’s promoter company GFL as a shareholder loan,” it added.
Fame also has subsidiaries such as Big Picture Hospitality Services — its food business joint venture, Headstrong Films — its film production joint venture, and Shringar Films — its film distribution business.
The latest acquisition will be followed by an open offer to acquire a further 20 percent stake in Fame, for cash, as per regulations of Securities and Exchange Board of India.
“It has been our stated goal, when we launched our first multiplex around eight years back, to be a significant player in the Indian multiplex space,” said Inox director Deepak Asher.
“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,” he added.
Inox currently has 30 operational properties, with 109 screens and a seating capacity of 31,401 in 21 cities across India.
Fame has 25 operational multiplexes with 95 screens and a seating capacity of 26,487 in 12 cities.
