AMG Media Networks Limited, the media arm of the Adani Group, on Tuesday announced to acquire 29.18 per cent stake indirectly in New Delhi Television Network (NDTV).
In a statement, the Adani Group said that AMG Media Networks’ wholly owned subsidiary Vishvapradhan Commercial Private Limited (VCPL) will acquire a 99.99 per cent stake in RRPR Holding Private Limited (RRPR), which is a promoter of the NDTV group.
RRPR holds a 28.19 per cent stake in NDTV, which runs three television channels – NDTV 24×7, NDTV India and NDTV Profit.
“AMNUs wholly owned subsidiary VCPL holds warrants of RRPR Holding Private Limited (RRPR) entitling it to convert them into 99.99% stake in RRPR. VCPL has exercised warrants to acquire 99.5% stake in RRPR,” as per the statement.
Such acquisition will result in VCPL acquiring control of RRPR.
“VCPL along with AMNL and Adani Enterprises Ltd (AEL) (persons acting in concert), will launch an open offer to acquire up to 26 per cent stake in NDTV, in compliance with the requirements of the SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011,” the Adani Group said.
The statement called NDTV, helmed by veteran journalist Pronoy Roy, as a “pioneer” in the “delivery of credible news for over three decades”.
NDTV recorded revenue of ₹421 crore with an EBITDA (earnings before interest, taxes, depreciation and amortization) of ₹123 crore and net profit of ₹85 crore in Financial Year 2012-22 with negligible debt.
‘This acquisition is a significant milestone in the journey of AMNL’s goal to pave the path of new age media across platforms,” said AMNL chief executive officer Sanjay Pugalia.
“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,” he added.