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INOX Leisure in Open Offer for Shares in Fame India Ltd


Saturday, February 6th, 2010

INOX Leisure Ltd., a major cinema chain operator, stated it has made an open offer to those holding shares in its smaller rival Fame India Ltd. to buy around 8.2 million at ace value of INR10 for INR51 a share.

Leading the offer was  Enam Securities Pvt. Ltd., which said the offer will be open from April 1 and close on April 20.

The offer would represent a discount, as at the latest close for Fame on the Bombay Stock Exchange (BSE), they ended the day at INR53.30.

On Friday, INOX acquired close to 2.51 million additional equity shares in Fame at INR50.75 each, bringing their total stake in Fame to 50.48 percent.

INOX is the second-largest cinema chain operator in India behind Reliance MediaWorks, as far as how many screens they own. INOX will own 204 overall screens in India once the acquisition is over. Reliance MediaWorks owns 509 screens with 246 of them residing in India.

Another major rivel PVR has also been looking to increase their screens in India, as they're looking at acquiring DT Cinemas, which would bring their total number of screens in India to 140.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: india business , india cinema , inox