Adani Group to acquire 29% in NDTV, says will launch open offer for another 26% stake
AMNL was recently incorporated as a subsidiary of Adani Enterprises to set up next generation media platform with emphasis on digital and broadcast segment
Ahmedabad: Adani Group subsidiary, AMG Media Networks Limited (AMNL), on Tuesday announced that it will indirectly acquire a 29.18% stake in media and news broadcaster New Delhi Television (NDTV) and launch an open offer to acquire another 26%.
AMNL’s wholly-owned subsidiary Vishvapradhan Commercial Private Limited (VCPL) has exercised the rights to acquire 99.5% of the equity shares of RRPR Holding Private Limited, a promoter group company of NDTV, according to a media statement by Adani Group. Such acquisition will result in VCPL acquiring control of RRPR.
RRPR is a promoter group company of NDTV and holds 29.18% stake in NDTV. VCPL, along with AMNL and Adani Enterprises (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 statement said.
The statement described NDTV as a leading media house that 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 a strong online presence and remains one of the most followed news handles on social media with more than 35 million followers across various platforms.
In a statement later, NDTV said 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.
“The notice from VCPL is based on a loan agreement it entered with NDTV founders Radhika and Prannoy Roy in 2009-10. The notice states that VCPL has exercised its option to convert 19,90,000 warrants into equity shares of RRPRH at ₹ 10/- per share, and that a total of 1.99 crores has been transferred to RRPRH.”
The Adani Group took a minority stake in local digital business news platform Quintillion in March this year.
“This acquisition is a significant milestone in the journey of AMNL’s goal to pave the path of new age media across platforms” said Sanjay Pugalia, CEO, AMG Media Networks Limited in a statement.
“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.”