Adani Group Acquires 29.18% Stake In NDTV; But NDTV Claims No Consent Taken Of Founders
On August 23, NDTV said there was no consent from its founders for the exercise of rights by Vishvapradhan Commercial Pvt Ltd (VCPL) to acquire 99.50 percent control of RRPR Holding Pvt Ltd (RRPRH).
VCPL Acquiring Stake In NDTV
Here, RRPRH is the promoter company that holds 29.18 percent stake in the media group.
This all started when New Delhi Television Ltd (NDTV) informed the stock exchanges that the rights were “executed without any input from, conversation with, or consent of the NDTV founders.”.
Interestingly, the statement came shortly after AMG Network Ltd (AMNL), the media arm of Indian conglomerate Adani Group, announced that its affiliated entity VCPL would acquire a 29.18 percent stake in NDTV, and would be launching an open offer for another 26 percent stake.
AMNL noted that VCPL has “exercised the right to acquire 99.5 percent of the equity shares of RRPR Holding.”
Further adding that this will “trigger an open offer to acquire up to 26 percent stake in NDTV”, in a release.
How Did This Happen?
NDTV said that the notice from VCPL is based on a loan agreement it entered with NDTV founders Radhika and Prannoy Roy in 2009-10, in its regulatory filing.
Adding, “The notice states that VCPL has exercised its option to convert 19,90,000 warrants into equity shares of RRPRH at Rs 10 per share, and that a total of Rs 1.99 crores has been transferred to RRPRH.”
Moving ahead, NDTV claimed that its founders were “made aware of this exercise of rights recently”.
So, as recently as August 22, the exchanges were informed that “there was no change in the shareholding of its founders”.
Regarding the VCPL’s open offer, NDTV stated that it has received a copy of the public announcement by the company, dated August 23, 2022, of an “open offer for acquiring up to 26 percent of the voting share capital at Rs 294 per share”.
Today, NDTV shares traded at Rs 384.50 apiece at the BSE , which was 5% percent higher as compared to the previous day’s close.
Similarly, the shares surged by 4.99 percent to close at Rs 388.20 apiece at the NSE.