Inox Leisure on Friday said it has managed to acquire only 1,075 shares from its open offer for Fame India, although it has managed to retain majority control of the multiplex chain in its fight against rival Reliance Media Works (RMW).
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.
"1,075 shares were acquired in the open offer," Inox said in a filing to the Bombay Stock Exchange, adding it had also transferred 1.5 crore shares from escrow account after the offer and its total shareholding in Fame India currently stood at 50.27 per cent.
It, however, could not be ascertained as to how many shares RMW managed to acquire through its open offer, as the company's spokesperson remained tightlipped.
Before the open offers were made, Inox held 50.2 per cent stake in Fame India, while RMW had 16 per cent stake via Reliance Capital.
Speaking on the development, Inox Director Deepak Asher said: "We are delighted to have completed this transaction and acquire control over Fame. We are now focussed on seizing the attractive opportunities this transaction has created for us to increase topline growth as well as achieving cost synergies, to enhance values for stakeholders of both companies."
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 Securities and Exchange Board of India 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.
The takeover code of the regulator mandates 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.
Shares of Inox were trading at Rs 67.20 per share , down 4.61 per cent on the Bombay Stock Exchange, while Fame was down 6 per cent at Rs 82.25 a piece.