Inox snaps up Fame India

Inox Leisure approved the purchase of 43.28% in Shroff family promoted, Fame India for an all-cash deal of Rs664.8mn. Inox bought up to 1,50,57,760 shares of Rs 10 each of Fame India, by way of a series of block trades. Inox Leisure bought an additional 7.21% stake in Fame India, taking its total shareholding in the later to 50.48%. The transaction through a block deal in the Bombay Stock Exchange (BSE) represents 2.5 million shares in Fame for a consideration of Rs50.75 a share, totaling Rs127.7mn, Inox said in a statement. The deal takes Inox's total investment at Fame to Rs792.5mn, it said. The acquisition would be funded through a loan from Inox's founders, Gujarat Fluorochemicals Ltd. This acquisition will be followed by an open offer to buy another 20% in Fame. This acquisition will create the largest multiplex networks with a total of 55 multiplexes, 204 screens and 57,891 seats. Enam Securities was the investment banker and Khaitan & Co. was the legal advisor to Inox. Yes Bank was the investment banker for Fame India and Naik & Co. was the legal advisor.