Reliance awaits SEBI approval for Fame open offer

MUMBAI: Reliance MediaWorks’ open offer to acquire an additional 52.72 per cent stake in multiplex chain Fame India has been delayed. Reliance now needs to await the approval of market regulator Securities and Exchange Board of India (SEBI).


In February, Anil Ambani’s three companies – Reliance MediaWorks, Reliance Capital and Reliance Capital Partners – had announced an open offer to acquire 2.17 crore shares or 52.72 per cent stake in Fame at Rs 83.40 a share, which amounted to Rs 1.80 billion (Rs 180 crore). At present, Reliance’s companies hold 13.79 per cent stake in Fame.


The open offer was originally scheduled to begin on 1 April and close on 20 April.


"The offer will now not open on 1 April, 2010. The revised schedule of activities will be announced separately after receiving SEBI’s approval," Reliance MediaWorks said.


The revised schedule of activities in respect of the offer will be announced only after receiving Sebi’s approval.