Reliance MediaWorks has offered to buy a majority stake in multiplex operator Inox Leisure in an attempt to end a prolonged tussle between the two companies over a smaller cinema chain. According to sources, ADAG has offered Rs 120 for every share to the owners of Inox, valuing the company at a little over Rs 740 crore. But the two sides were still talking about valuation and a final agreement had not been reached. The owners of Inox are holding out for a higher price, said to be around `140. The Jain family owns just under 67% of Inox.
Reliance MediaWorks and Inox been have been battling each other for months over another multiplex operator, Fame. Both have offered to buy out minority shareholders, though the rival offers are yet to be cleared by the Securities and Exchange Board or Sebi, the regulator of capital market. Inox already owns 51% of Fame but Reliance MediaWorks has bitterly contested that acquisition on the ground that a higher bid from it was wrongly rejected. It has complained to Sebi about a transaction in which the promoters of Fame sold a 43.5% stake to Inox.