Adani Group Co. acquires 29% stake in NDTV, Open offer for 26% more
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Adani Group subsidiary, AMG Media Networks Limited (AMNL) will acquire nearly 29% stake in NDTV through a indirect deal, and launched an open offer to acquire an additional 26% from shareholders, as mandated by law.
AMNL acquired the stake in NDTV indirectly using Vishvapradhan Commercial Pvt. Ltd (VCPL) its wholly owned ?wholly-owned subsidiary, which owned convertible debentures (warrants that provide for the conversion of debt to equity) in RRPR Holding Pvt. ltd.?a promoter group company of NDTV. Such acquisition will result in VCPL acquiring control of RRPR.
This multi-layered deal includes various entities, shown in simplified manner below:
Adani Group ->> AMNL->> VCPL->>RRPR Holding Pvt. ltd.(Promoter group of NDTV)
RRPR is a promoter group company of NDTV and holds 29.18% stake in NDTV. VCPL, along with AMNL and Adani Enterprises (persons acting in concert), announced an open offer?at??294 per share, representing a 28% discount to NDTV’s??376 closing price on Tuesday, in compliance with the requirements of the SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
NDTV's founders, Prannoy and Radhika Roy, said in the statement the exercise of rights rights by Vishvapradhan Commercial was done without their consent or any other consultation with them.
“The NDTV founders and the company would like to make it clear that this exercise of rights by?VCPL was executed without any input from, conversation with, or consent of the NDTV founders, who, like NDTV, have been made aware of this exercise of rights only todayâ€
The company operates three national news channels – NDTV 24x7, NDTV India and NDTV Profit. It also has a strong online presence and remains one of the most followed news handles on social media with more than 35 million followers across various platforms.