Reliance MediaWorks Ltd (RML), the Anil Dhirubhai Ambani Group company, is taking up the Inox Leisure Ltd’s acquisition of promoter stake in Fame India with authorities and regulatory bodies, claiming it had offered a better deal.
A RML spokesperson in an e-mail statement said, “It will bring all relevant facts to the notice of all regulatory authorities, including inter alia Securities and Exchange Board of India, Ministry of Company Affairs, Reserve Bank of India, Income Tax, etc for such action, if any, as they deem appropriate.”
RML in an earlier e-mail communique to Fame India MD Shravan Shroff had sought information on the basis of which the latter sold its promoter stake to Inox.
RML said it had earlier expressed intentions to offer Fame India a much better acquisition price (Rs 80 per share) vis-a-vis Inox’s offer of Rs 44-45 per share.
However, media reports quoted Shroff saying that RML had not made any written offer at a higher price.
Neither Fame nor its investment banker (Yes Bank) reverted with their reasoning, leaving RML with no option but to approach the market regulator, a RML spokesperson said.
“The issues involved are nowhere as simple as acceptance of a higher or lower price by the sellers, but far more complex and involving serious matters relating to suppression of material facts, violations of the SEBI Takeover Code and SEBI Fraudulent & Unfair Trade Practices Regulations, the fiduciary duties of promoters of listed companies and protection of the interests of minority shareholders,” said the spokesperson.
Meanwhile, Reliance Capital Partners, the ADAG firm, on Tuesday upped its stake in Fame India by 1.64% through open market purchase at an average price of Rs 59.09 taking its stake to 8.13%.
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