On November 22, the Adani Group will make an open bid for NDTV.
AMG Media Networks, part of the Adani Group, said on August 23 that its subsidiary, Vishvapradhan Commercial Pvt Ltd (VCPL), will be acquiring 99.5% of the share capital of RRPR, the investment firm of NDTV’s proprietors. More than a decade ago, VPCL financed the founders of NDTV more than Rs 400 crore.
Billionaire entrepreneur Gautam Adani-led Adani Group Announced a revised schedule for its intended open offer to purchase an additional 26 percent investment in news broadcaster NDTV. The business announced the modification in a stock market statement, saying that the offer would become available for subscription on November 22 and end on December 5.
The original deadline for the deal to purchase a share in NDTV was from October 17 to November 1.
The extended deadline comes after the conglomerate reaffirmed its commitment to completing the open offer process for more shares in NDTV in a letter to the Securities and Exchange Board of India (SEBI) last month.
“VCPL reaffirms its commitment to complete the Open Offer processes (pending completion of the Underlying Transaction), and SEBI has been invited to offer its opinions on the Draft Letter of Offer submitted in respect to the Open Offer, in line with the SEBI (SAST) Regulations,” the Adani Group stated.
According to a filing made by NDTV with stock markets on Friday, the planned open offer by the Adani group to purchase 26% of NDTV’s public ownership has been given a new deadline. The original window for Adani’s open offer was from October 17 to November 1.
NDTV’s founders, Prannoy Roy and Radhika Roy, RRPR, acquired the investment business of the Adani group’s AMG Media Networks, via its subsidiary Vishvapradhan Commercial Pvt Ltd (VCPL), on August 23.
VPCL had financed over Rs 400 crore to the NDTV founders over a decade ago in return for warrants that permitted it to buy a share of 29.18% in NDTV at any moment. A 99.99 percent interest in RRPR Holding is VCPL’s for the taking, thanks to its ownership of 1,990,000 warrants of that company.
By purchasing 1,990,000 equity shares (or 99.50%), VCPL has effectively taken control of RRPR Holding by partially executing its option. RRPR Holding owns 29.18 percent of NDTV, a media conglomerate that operates three national television networks.
According to the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, this prompted an open offer to buy shares in NDTV from the public.
The proprietors of NDTV, however, insisted that the acquisition couldn’t go through without the approval of SEBI and the IT department. According to the Adani Group, the IT department is unnecessary to complete this transaction.
The founders of NDTV have raised objections to the open offer and the purchase of VCPL’s stock, arguing that the transaction cannot go through without the approval of Sebi and the Income Tax Department.
The Adani group previously refuted claims that the share sale would need approval from tax authorities.
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