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Journalism of Courage
Anil Ambani has made his first acquisition after splitting with his elder brother Mukesh 12 days ago. Reliance Land Pvt Ltd (RLPL), part of the Anil D. Ambani-controlled Reliance Capital, on Thursday proposed to acquire 51 per cent stake in film and entertainment software company Adlabs Films Ltd for Rs 350 crore.
The Ambani firm will make a preferential offer to buy stake in the Mumbai-based company. As per the Sebi’s takeover code, Reliance Capital will have to make an open offer for 20 per cent stake. Currently, promoters Manmohan Shetty and family hold 63 per cent stake in Adlabs.
Reacting to the news, share price of Adlabs shot up by 20 per cent to Rs 240.60 on the BSE on Thursday. For the fiscal 2004-05, Adlabs posted a turnover of Rs 82.4 crore and a profit of Rs 21 crore in 2004-05. Adlabs is in the digital movie production and has a network of entertainment centres and multiplexes.
Earlier this week, Reliance Mutual Fund — which is under Anil’s control — had acquired 8.6 per cent stake in entertainment firm Pritish Nandy Communications.
Anil Ambani has been working out strategies for his companies after the settlement in the Reliance group on June 18. Reliance Energy and Reliance Capital have made preferential offers worth Rs 3,000 crore last week. He is expected to unveil plans for Reliance Infocomm in the coming weeks.
Manmohan Shetty, chairman of Adlabs, would continue in the same position while his daughter Pooja Shetty would stay as director as part of plans to continue with the present management.
Said Manmohan Shetty: ‘‘The investment by Reliance will provide the company a strong and unparalleled platform to pursue exciting growth opportunities. This development will make Adlabs the largest company in its sector by all financial parameters.’’
Adlabs’s main business is processing of pictures and it has processed films for all major production companies in Mumbai. Adlabs entered into an exclusive technological agreement with IMAX Corporation, Canada and built IMAX Adlabs Dome Theatre in Mumbai. The theatre was commissioned on March 5, 2001.
Anil Ambani seeks direct to home entry
MUMBAI: Anil Ambani has also approached the government for permission to operate DTH services in the country. The twin moves come within a fortnight of Anil getting Infocomm, Reliance Energy and Reliance Capital as part of settlement of ownership of Reliance empire with elder brother Mukesh. Anil Ambani’s DTH project will put him in direct competition with Zee group and Star-Tata group’s DTH project. While Zee and Doordarshan’s DTH projects have been launched already, Star-Tata is awaiting the government’s permission.
