NDTV Adani Group's media arm set to acquire majority stake in NDTV
Mumbai: Gautam Adani-led Adani group's media arm Tuesday announced that it would buy a 29.18 percent stake in New Delhi Television Ltd (NDTV), and make an open offer to acquire another 26 percent of the shares in the company, media reports said.
This would be Gautam Adani's most high-profile bet in India's media sector.
In a statement, Adani Group said, "Vishvapradhan Commercial Private Limited (VCPL), wholly owned subsidiary of AMG Media Networks Limited (AMNL), has exercised the rights to acquire 99.5% of the equity shares of RRPR Holding Private Limited, a promoter group company of NDTV."
This will trigger an open offer to acquire up to 26% stake in NDTV in terms of SEBI’s Takeover Regulations.
AMNL’s wholly owned subsidiary VCPL holds warrants of RRPR Holding Private Limited (RRPR) entitling it to convert them into 99.9% stake in RRPR, the company said.
VCPL has exercised warrants to acquire 99.5% stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR.
RRPR is a promoter group company of NDTV (NDTV, BSE: 532529) and holds 29.18% stake in NDTV. VCPL, along with AMNL & AEL (persons acting in concert), will launch an open offer to acquire up to 26% stake in NDTV, in compliance with the requirements of the SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the company noted.
NDTV is a leading media house which has pioneered the delivery of credible news for over three decades. The company operates three national news channels – NDTV 24x7, NDTV India and NDTV Profit. It also has strong online presence and remains one of the most followed news handles on social media with more than 35 million followers across various platforms.
AMNL CEO Sanjay Pugalia said this "acquisition is a significant milestone" in the company's goal to "pave the path of new age media across platforms"
“AMNL seeks to empower Indian citizens, consumers and those interested in India, with information and knowledge. With its leading position in news and its strong and diverse reach across genres and geographies, NDTV is the most suitable broadcast and digital platform to deliver on our vision. We look forward to strengthening NDTV’s leadership in news delivery," Pugalia added.
As news of the acquisition of a majority stake in NDTV by AMNL surfaced, the media company released a statement saying that the exercise of rights by VCPL does not have the consent of its founders.
"The NDTV founders and the Company would like to make it clear that this exercise of rights by VCPL was executed without any input from, conversation with, or consent of the NDTV founders, who, like NDTV, have been made aware of this exercise of rights only today. As recently as yesterday, NDTV had informed the stock exchanges that there was no change in the shareholding of its founders," it said in a regulatory filing.
In September last year, too, NDTV's stock had clocked a 52-week high amid reports of a likely buyout by Adani Group.
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