INOX Leisure launches 20% open offer for Fame India

Multiplex operator INOX Leisure's open offer for an additional 20 per cent stake in Fame India will begin on April 1, 2010 and would close on April 20, 2010.This would take the total shareholding in the later to 50.48 percent.

INOX Leisure had made an offer to acquire up to 82,31,759 equity shares representing 20 per cent of the target company at a price of Rs 51 a piece. The open offer price is 4 per cent lower than the prevailing market price of Fame India at Rs 53.30 on the BSE. On Wednesday, INOX Leisure had acquired 43.28 per cent stake in Fame India for Rs 66.48 crore making it India's No. 2 multiplex chain.

Recently the multiplex operator raised holding in Fame India by 7.21 per cent to 50.

The transaction through a block deal in the Bombay Stock Exchange represents 2.5 million shares in Fame for a consideration of 50.75 rupees a share, totaling 127.7 million rupees. The deal takes INOX's total investment at Fame to 792.5 million rupees .The acquisition would be funded through a loan from INOX's founders, Gujarat Fluorochemicals.