Reliance MediaWorks to seek action against Fame India

NEW DELHI: Reliance MediaWorks said it would seek action against Fame India for selling promoters' stake in the theatre chain to INOX Leisure at a price much lower than it had offered.

"Reliance MediaWorks will bring all relevant facts to the notice of all regulatory authorities, including inter alia SEBI, Ministry of Company Affairs, Reserve Bank of India, Income Tax, etc. for such action, if any, as they deem appropriate," the ADAG company said in a statement.

It said the issues involved in the deal are not as simple as acceptance of a higher or lower price by the seller, but are far more complex and concern several other points.

The company said the deal raises issues like suppression of material facts, violations of SEBI Takeover Code and SEBI Fraudulent and Unfair Trade Practices Regulations, fiduciary duties of promoters of listed companies and protection of the interest of minority shareholders.

Last week, INOX Leisure had acquired promoters' 43.28 per cent stake in Fame India for Rs 66.48 crore and will make an open offer from April 1 to acquire a further 20 per cent stake at a price of Rs 51 per share.

Reliance MediaWorks has said it had offered to buy the promoter's stake in Fame India for Rs 80 per share, "representing an almost 100 per cent premium to the prevailing market process".

Calls to Fame India spokesperson for comments remained unanswered.