What TV doesn't, print can't; we deliver.
What TV doesn't, print can't; we deliver.
Indian conglomerate Adani Group’s open offer to acquire an additional 26 per cent stake in the news media company, NDTV (New Delhi Television) opened from the equity market commenced on Tuesday.
Adani Group, helmed by billionaire Gautam Adani, will have controlling and management powers once the process is completed. A price band of ₹294 has been fixed for the offer which will close on December 5, according to JM Financial, the company which manages the offer.
Before this, Adani Group had fixed the timeline of October 17 to November 1 for the open offer. However, it was delayed because the company did not have authorisation from SEBI.
NDTV’s shares tanked by more than five per cent to ₹362 at the Bombay Stock Exchange and the National Stock Exchange in intraday trading.
The proposal of the ₹492.81 crores open offer was approved by India’s market regulatory body Securities and Exchange Board of India (SEBI) last week, which marked a tilt in the takeover battle between Asia’s richest man and the broadcaster’s founders – Pronnoy and Radhika Roy.
If it is fully subscribed, the open offer will amount to ₹492.81 crores.
The attempt to takeover NDTV was triggered in August after a wholly-owned subsidiary of Adani Group’s media wing AMG Media Networks Limited exercised its rights to acquire 99.5 per cent of equity shares of RRPR Holding Private Limited, which is a promoter group company of NDTV.
But the bid started way before August, with Adani acquiring little-known Vishvapradhan Commercial Private Limited (VPCL) which had lent more than ₹400 crores to NDTV founders more than a decade back in lieu of warrants allowing it to acquire a 29.18 per cent stake in the news media company.
In a regulatory filing, Adani Enterprises had said that the decision to acquire NDTV was taken in line with the group’s objective to set up a “credible next-generation media platform with an emphasis on digital and broadcast segments and that NDTV is a suitable broadcast and digital platform to deliver on this vision”.
However, the media outlet had said that the takeover was not being done with the consent of its top management.
