Khaitan & Co. advised Inox Lesiure in its acquisition of 43 percent stake in Fame Cinemas. The promoters’ stake at Fame was valued at Rs. 65 Crores ($14.1 million). Managing Partner Haigreve Khaitan advised Inox on this deal which will make them race ahead of PVR Cinemas that controls 135 screens.

In November, PVR had acquired the theatre businesses of real estate giant DLF which was the beginning of theatre consolidation. Reuters reports that the combined network of the two operators will have 55 multiplexes and 204 screens in all, with Fame bringing in 25 operational multiplexes and 95 screens. Haigreve Khaitan, the Managing Partner of Khaitan & Co., said “This transaction was quite challenging, given the complexities involved and limited time frame to deliver results. INOX Leisure, its parent Gujarat Flourochemicals and group companies have been our long-standing client and we advise them in almost all of their transactions. We are very pleased to assist them in this very important strategic transaction.”

Entertainment firm Naik Naik & Co. has acted for Fame Cinemas. Naik Naik & Co has advised on a series of Bollywood issues, most recently being Rann, which was involved, in a copyright controversy. Name Partner, Ameet Naik along with Madhu Gadodia advised Fame.    

Fame was in talks with Mexican Multiplex Major Cinepolis for a potential sale which did not go through due to valuation concerns. As per SEBI Takeover Guidelines, Inox will have to make an open offer for an additional 20 percent, as Fame is a listed entity which might see Inox’s share going above 51 percent.

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