Inox Leisure non-executive director Deepak Asher and director Pavan Kumar Jain have recused themselves and shall not participate in any matters concerning the open offers to minority shareholders of Fame India. Equity shareholders of Fame India were informed of this decision.
The open offers, to the minority shareholders of Fame India, are to be made by Inox Leisure and Reliance Mediaworks (RMW) following the acquisition, by these companies, of stakes in Fame India. The open offer started on December 16, 2010 and will close on January 4, 2011. In early February 2010, Inox Leisure bought a 43.28% stake in Fame India, from the promoters, at Rs 44 a share. It subsequently purchased another 7.21% at Rs 50.75 apiece and announced an open offer for an additional 20% from minority shareholders.
On February 21, RMW put in a competitive offer to acquire 52.48% in Fame at a price of Rs 83.4 a share. RMW said it had acquired 12.4% in Fame through open market operations. On March 8, the company announced to the stock exchanges that it had raised its stake in Fame to 13.8% through open market operations. By September, 2010, it had upped its stake to 15.88%.