ADA Group cos hike stake in Fame India

Anil Ambani Group firm Reliance Capital Partners on Tuesday said it along with two other group companies has acquired an additional 4,081 equity shares representing 0.01 per cent stake in Fame India, hiking their stake in the multiplex chain to 13.8 per cent.

On March 8, Reliance MediaWorks, Reliance Capital and Reliance Capital Partners have acquired 4,081 equity shares constituting 0.01 per cent of the equity share capital of Fame at an average price of Rs 83, aggregating to Rs 3.38 lakh, the company said in a filing to the Bombay Stock Exchange.

Pursuant to the stake buy, the ADA Group companies now hold 13.8 per cent stake in Fame.  The ADA Group firms have already announced open offer to acquire 2.17 crore shares or 52.72 per cent stake in Fame at Rs 83.40 a share, aggregating to around Rs 180 crore (Rs 1.8 billion).

The race for Fame heated up after Inox entered into an agreement with the promoters of Fame to acquire their 43.28 per cent stake for Rs 66.48 crore (Rs 664.8 million) or at Rs 44/45 a share. Inox holds 51 per cent in Fame India and has made an open offer for an additional 20 per cent at Rs 51 per share.

Soon a war of words erupted, with ADAG alleging that the Fame promoters harmed the minority shareholders by selling their stake to Inox at a price much lower than offered by Reliance MediaWorks (Rs 88 a share).