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

Updated on: Aug 23, 2022, 21:14:06 IST

By Maulik Pathak

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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%.

AMNLis a subsidiary of Gautam Adani’s Adani group and houses the media business of the Adani Group. (File Photo/Mint)

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.”

ABOUT THE AUTHOR
Maulik Pathak
He is an Ahmedabad-based journalist with more than two decades of experience. His career spans business journalism and general news, with reporting across politics, crime, governance, public policy, business, industry, infrastructure, energy, ports, aviation, the environment, wildlife and social issues. He began his career in feature writing before moving into business journalism, reporting on companies and sectors including energy, infrastructure, pharmaceuticals, automobiles and real estate. Over the years, his work expanded to politics, courts, crime, public policy, civic affairs, the environment and wildlife. His reporting has taken him from government offices and courtrooms to factory floors, ports, forests and remote villages, covering stories that range from industrial investments and financial markets to elections, conservation and issues affecting everyday life. While many assignments demand the pace of the daily news cycle, others require sustained reporting over months and years to follow developments beyond the headlines. He started his journalism career with the Asian Age in Ahmedabad in 2002 as a feature writer and sub-editor. Since 2022, he has been working with Hindustan Times. Earlier, he worked with Business Standard, DNA, The Economic Times, Mint and The Times of India. His longest stint was with Mint, where he spent more than eight years reporting across multiple beats. During his career, he has worked in both reporting and editing roles, contributing to page planning, local editions and special editorial projects as newsrooms evolved from print-first operations to digital publishing. Early in his career, he also worked on media and documentary projects with an NGO and as a copywriter at a communications agency before returning to journalism. Away from work, he sometimes makes time for a pair of binoculars, table tennis, cinema and the occasional poem.Read More

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