Reliance Capital Group To Buy Adlabs In Rs 360 Cr

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Reliance Capital group to buy Adlabs in Rs 360 crore deal

20% open offer to follow; stock price surges 20%

CORPORATE BUREAU

Posted online: Friday, July 01, 2005 at 0009 hours IST

MUMBAI, JUNE 30: Reliance Land Pvt Ltd, a part of the Anil Ambani-led Reliance Capital group, on Thursday said it planned to acquire 51% equity in Adlabs Films Ltd for around Rs 360 crore.

Reliance Land will first invest about Rs 250 crore in Adlabs through a preferential offer. The deal is subject to Sebi’s takeover regulations, and shareholder and other requisite approvals. The acquisition price is Rs 183 per share.

Rs 100 crore more would be pumped in to buy the stake of Vasanji A Mamania, one of the two promoters of the company. Reliance Land will then make an open offer for a further 20% of the company, which if fully subscribed will entail an investment of another Rs 150 crore. Ambit Finance will be the lead manager for the open offer. Reliance Capital already holds 5.84% in Adlabs.

The Adlabs acquisition by the Reliance Capital group, which now comes under the newly carved out Anil Dhirubhai Ambani Enterprises after the settlement between the Ambani brothers, is the first major acquisition by the group. The group sources said more such acquisitions are being planned.

The Adlabs stock was locked at the 20% upper circuit on both the exchanges on Thursday. On the Bombay Stock Exchange, the stock ended the day at Rs 240.6, up Rs 40.10. Over 16 lakh shares changed hands on the BSE, while onNSE, the stock ended 20% higher to end at Rs 241.50.

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