Anil Ambani to acquire Rs350-crore majority stake in Adlabs

By Our Corporate Bureau | 01 Jul 2005

The Ambani firm will make a preferential offer to buy stake in the Mumbai-based company. As per the SEBI''s take-over code, Reliance Capital will have to make an open offer for 20 per cent stake.

Adlab promoters, Manmohan Shetty and family, hold 63 per cent in Adlabs.

Adlabs had posted a a profit of Rs21 crore on a turnover of Rs82.4 crore in 2004-05. Adlabs is digital movie production house with a network of entertainment centres and multiplexes.

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.''''

Its main business is post-production 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.

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.