A 29.2% stake in NDTV is to be acquired by the Adani Group, and a 26% open offer will follow

A 29.2% stake in NDTV is to be acquired by the Adani Group, and a 26% open offer will follow

According to a statement from the Adani Group, AMG Media Networks Limited, a division of the company, will indirectly purchase a 29.18% stake in New Delhi Television Ltd (NDTV) and make an open offer to purchase an additional 26% of the media company. For 294 per share, Adani companies made an open bid for NDTV’s 26% ownership worth 493.0 crores. At 376.55 per share, the shares of the global media company concluded the day 5% higher.

A warrant of RRPR Holding Private Limited (RRPR) that entitles AMNL’s wholly owned subsidiary VCPL to convert it into a 99.99% share in RRPR is held by RRPR. To acquire 99.5% ownership in RRPR, VCPL has used warrants. VCPL will gain control of RRPR as a result of this acquisition.

In addition to holding 29.18% ownership in NDTV, RRPR is a member of the promoter group. VCPL will begin an open offer to buy up to a 26% interest in NDTV at 294 per share, in cooperation with AMNL and AEL (parties operating together).

According to the SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the Adani group businesses would begin an open bid to purchase up to 26% of NDTV.

A statement to the general public has been released by JM Financial Ltd, which is in charge of managing the offer for the acquirers.

The price fixed following Regulation 8(2) of the SEBI (SAST) Regulations is higher than the offer price, the offer states. Three national news stations are run by NDTV, a renowned media company, including NDTV 24×7, NDTV India, and NDTV Profit. It remains one of the most popular news accounts on social media and has a sizable online presence, with more than 35 million followers spread across several platforms.

In FY22, the firm reported revenues of 421 crores, EBITDA of 123 crores, and net income of 85 crores.

According to Sanjay Pugalia, CEO of AMG Media Networks Limited, “This purchase represents a critical milestone in the journey of AMNL’s objective to lead the route of new age media across platforms.”

“AMNL aims to provide information and expertise to Indian people, customers, and foreigners with an interest in India. Adani Group includes seven publicly traded companies that operate in industries including running ports and airports, generating and transmitting electricity, and selling coal and gas.

One of India’s most significant commercial conglomerates, the Adani Group, is represented through its flagship firm, Adani Enterprises Limited.

On the BSE, NDTV shares had closed at $366 today.

The media firm has asserted that the markets regulator must accept the acquisition of a 29.18% stake, citing a SEBI directive issued in 2020. In a letter sent to the Securities and Exchange Board of India on Sunday, NDTV requested that the market watchdog investigate the possibility that the 2020 order barring the owners of the media company from the busy transactions in the securities market is impeding the Adani Group’s ability to purchase shares.

The billionaire Gautam Adani-led business Adani Enterprises announced on Tuesday that it will be purchasing a 29.18% share in NDTV through its subsidiary, Vishvapradhan Commercial Private Limited. Radhika Roy and Prannoy Roy, the co-founders of NDTV, own this interest through their promoter firm, Radhika Roy Prannoy Roy Private Limited.

The Roys were prohibited from entering the securities market until November 26, 2022, by an order issued by the Securities and Exchange Board of India (SEBI) on November 27, 2020. This ruling was used by NDTV on Thursday to back up its claim that the markets watchdog’s regulatory permission was necessary for the Adani Group’s acquisition of a 29.18% stake.

The NDTV co-founders’ claims, according to The Adani Group, are “baseless and legally unsustainable.”

NDTV told its shareholders in a regulatory statement to the markets on Monday that it had requested clarification from SEBI on the situation. The media company said that Vishvapradhan Commercial Private Limited was also made aware of NDTV’s letter to SEBI.

NDTV’s shares were bought by Adani Group.

AMG Media Networks Limited, an Adani Enterprises wholly-owned company, bought all of the equity in VCPL on Tuesday for Rs 113.74 crore.

2009 saw VCPL lend NDTV a total of Rs 403.85 billion. The company decided to exercise its warrants and convert the loan amount into equity shares in response to the claim made by the Adani Group. This decision was taken in accordance with the terms of the loan arrangement. It was completed on Tuesday.

NDTV wrote a letter to SEBI disputing the propriety of this conversion into equity shares. In addition, following the announcement of its acquisition on Tuesday, the Gautam Adani-led group of companies said it will make an open offer to purchase an additional 26% of the media firm.

According to SEBI regulations, a company that buys more than 25% of a business has the right to make an open offer to its target company’s shareholders, inviting them to sell their shares for a set price. According to NDTV, the Roys’ “input from, dialogue with, or consent” was not solicited before the transaction announcement.