Reliance MediaWorks to buy more shares in open offer

Reliance MediaWorks on Monday said it raised its open offer for cinema chain Fame India by 1,00,000 shares to meet a regulatory requirement.

Reliance MediaWorks had in February made a competitive bid for a majority stake in Fame at Rs83.40 a share, 63.5% higher than an offer by Inox Leisure for 20% equity at Rs51 a share. Inox already holds 50.48% in Fame.

The company said on Monday that it will make an open offer for 21.7 million shares, not 21.6 million shares that it had announced earlier.

Reliance MediaWorks increased its offer size after it reported that it held about 1,00,000 shares less than what it had said in its previous public offer announcement on February 21. Since the announcement, the company has raised its stake in Fame to 13.79% from 11.82%.