Adani’s entry in NDTV, bought 29 percent stake, company claims ‘forced’ purchase
Adani Group also issued an open offer to buy more stake, NDTV claimed there was no discussion or agreement with its founders
Adani Group has bought 29 per cent stake in New Delhi Television Limited (NDTV). Gautam Adani’s group said it would also launch an open offer to buy another 26% stake. However, in a notice sent to the Securities and Exchange Board (SEBI), NDTV said it was not informed about the acquisition. NDTV claimed that there was neither any discussion nor any settlement with its founders – Prannoy Roy and Radhika Roy. The Roys hold 32.26 per cent stake in NDTV.
“He personally and through his company RRPR Holding Pvt Ltd has retained 61.45 per cent of the total paid-up share capital of NDTV,” NDTV said in a statement. In May this year, the Adani Group had announced to buy 49% stake in BloombergQuint. Adani Enterprises Limited subsidiary AMG Media Networks on Tuesday acquired Vishwapradhan Commercial Private Limited (VCPL). VCPL had given a loan of Rs 403.85 crore to RRPR Holding Pvt Ltd, the promoter company of NDTV, in 2009 and 2010. RRPR Holding was owned by the Roy couple. RRPR issued warrant to VCPL against this interest free loan. Through these warrants, VCPL can acquire 99.9 per cent stake in RRPR.
and announced to buy 26 percent stake
In this regard, NDTV said on Tuesday that VCPL sent the notice without talking to the company or its founder-promoters. It said that VCPL has exercised its right to acquire 99.50 per cent stake in RRPR. RRPR holds 29.18% stake in NDTV. Interestingly, VCPL had borrowed money from Reliance Strategic Ventures, a subsidiary of Mukesh Ambani’s Reliance Industries Limited (RIL), to finance the RRPR. The Founders of NDTV and the Company wish to clarify that VCPL exercises these rights for any input, communication or consent from the Founders of NDTV.
Significantly, after the acquisition of VCPL for Rs 11.75 crore, the Adani Group announced to buy another 26 per cent stake in NDTV. Open offer will be started for this. Adani Group is offering 294 per share. Shares of NDTV closed at 366.20 on BSE on Tuesday, up 2.6 per cent over the previous day.
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