MUMBAI: The war over ownership of multiplex chain Fame India is getting fiercer with Anil Ambani-led Reliance MediaWorks finally launching a hostile takeover bid.

Reliance MediaWorks board, the cinema exhibition and production business of Reliance ADAG, has approved an open offer to Fame shareholders to acquire 21.6 million shares, or 62.08 per cent stake, at Rs 83.4 a share, much higher than what Inox Leisure is paying to take overwhelming control of the multiplex chain. 

Reliance‘s counter offer is at a 63.5 per cent premium to Inox‘s open offer price of Rs 51 per share for an additional 20 per cent stake. Reliance‘s payout would be
Rs 1.8 billion, approved by its board as it pitches for an aggressive buyout offer to scale up its multiplex business.

Inox already holds 50.5 per cent in Fame, having bought out the promoters‘ holding and making additional purchases executed at the BSE.

Reliance Capital has already acquired 12.14 per cent of Fame through a series of open market purchases. The company had started upping its holding in Fame after Inox bought a majority stake in the multiplex company.

Reliance MediaWorks had earlier said that it would seek action against Fame for selling it to Inox at a cheaper price when it had made an offer to the promoters for Rs 80 a share.