RMW loses battle for control of Fame India to Inox

In a filing to the Bombay Stock Exchange, Reliance MediaWorks said it could acquire 68.19 lakh shares, accounting 19.51 per cent stake in Fame India, out of a total 2.17 crore shares in its open offer that closed on January 4.

Post the offer, RWM, which had earlier held about 16 per cent stake in Fame India, now holds 35.39 per cent.

Inox, on the other hand, retained management control of Fame with acquisition of 50.27 per cent stake, post the announcement of the mandatory open offer as required by the Securities and Exchange Board of India (SEBI).

Before the open offers were made, Inox held around 50.2 per cent stake in Fame India,
which post the offer now stands at 50.27 per cent. Inox Leisure had managed to acquire only 1,075 shares from its open offer.

In February last year, Inox and RMW had made open offers to gain control of Fame India. It was, however, not executed after RMW approached market regulator SEBI against the induction of Inox directors on Fame's board while seeking equal representation claiming it has made a competitive bid.

Since then the matter was pending with SEBI, which in December last year gave nod to the two rivals to go ahead with their respective open offers.

Both Inox Leisure and RMW had made their respective open offers for Fame India, which closed on January 4. Inox made the offer for 20.25 per cent stake (82,31,759 equity shares) in Fame India at Rs 51 per share of Rs 10 each.

On the other hand, Anil Ambani-led RMW had proposed to acquire 2.17 crore Fame India shares from public, representing 53.38 per cent stake in Fame India at Rs 83 per share.
The takeover code of SEBI mandates that any entity owning more than 15 per cent in a company has to make a mandatory open offer for at least additional 20 per cent stake.