Adani Group's media arm on August 23 announced that it would purchase a 29.18 percent stake in New Delhi Television Ltd (NDTV), and make an open offer to acquire another 26 percent of the shares in the company.
The acquisition of 29.18 percent stake will be indirect, as it will be made through Vishvapradhan Commercial Pvt Ltd (VCPL), a wholly owned subsidiary of AMG Media Network Ltd (AMNL), which is owned by Adani Enterprises Ltd (AEL).
VCPL has exercised the right to acquire "99.5 percent of the equity shares of RRPR Holding Private Limited", a promoter entity of NDTV which holds 29.18 percent stake in the media group, a press release said.
This will trigger an open offer to acquire up to 26 percent stake in NDTV in terms of SEBI’s takeover regulations, the company said.
"VCPL, along with AMNL and AEL, will launch an open offer to acquire up to 26 percent stake in NDTV, in compliance with the requirements of the SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011", the release noted.
AMNL CEO Sanjay Pugalia said this "acquisition is a significant milestone" in the company's goal to "pave the path of new age media across platforms"
“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. We look forward to strengthening NDTV’s leadership in news delivery," Pugalia added.
Shortly after AMNL's statement, NDTV issued a statement, claiming that the exercise of rights by VCPL does not have the consent of its founders.
"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 today. As recently as yesterday, NDTV had informed the stock exchanges that there was no change in the shareholding of its founders," it said in a regulatory filing.
NDTV, which operates three national news channels – NDTV 24x7, NDTV India and NDTV Profit - also has strong online presence. The company recorded a revenue of Rs 421 crore in financial year 2022, with an EBITDA of Rs 123 crore and net profit of Rs 85 crore during the fiscal.
The shares of NDTV closed at Rs 374.70 apiece at the BSE, which was 4.99 percent higher as compared to the previous day's close. At the NSE, the shares surged by 3.09 percent to close at Rs 369.75 apiece.
In September last year, NDTV's stock had clocked a 52-week high amid reports of a likely buyout by Adani Group. The company had, then, claimed that its promoters were not in discussions with any entity for a change in ownership or a divestment of their stake.
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