New Delhi: Adani group firms on Tuesday made an open offer worth Rs 493 crore for buying an additional 26 per cent stake in NDTV Ltd, following the acquisition of nearly 30 per cent shareholding in the company by way of conversion of warrants. If the open offer is successful, the Adani group will become the majority shareholder in the broadcaster with over 55 per cent stake.
Earlier on Monday, NDTV scotched reports of its founder-promoters selling their stake as rumours. "... Radhika and Prannoy Roy are not in discussions now, nor they have been, with any entity for a change in ownership or a divestment of their stake in NDTV. They individually and through their company, RRPR Holding Private Limited, continue to hold 61.54% of the total paid-up share capital of NDTV," a disclosure filing to the NSE from the NDTV group said.
Vishvapradhan Commercial Pvt Ltd (VCPL), a wholly-owned subsidiary of AMG Media Networks Ltd, has exercised its warrants in RRPR Holding Pvt Ltd (RRPR) following which it has a 29.18 per cent stake in the broadcaster. RRPR is a promoter group company of NDTV.
"VCPL has exercised warrants to acquire a 99.5 per cent stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR," the Adani group said in a statement on Tuesday. Subsequent to the exercise of the warrants, three Adani group firms have made the open offer for buying an additional 26 per cent stake in NDTV for about Rs 493 crore.
VCPL along with Adani Media Networks Ltd and Adani Enterprises Ltd has made the open offer at a price of Rs 294 each for the acquisition of up to 1,67,62,530 fully paid-up equity shares of NDTV. NDTV's share price, which has risen more than 300 per cent so far this year, closed at Rs 366.20 apiece on BSE on Tuesday. The open offer price is 19.71 per cent lower than the closing price on Tuesday.
Sanjay Pugalia, the CEO of AMG Media Networks Ltd (AMNL), said this acquisition is a significant milestone in the journey of 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," he said. NDTV founder Prannoy Roy and Radhika Roy together hold 32.26 per cent shareholding in the company. NDTV has three national news channels -- NDTV 24x7, NDTV India and NDTV Profit.
NDTV, in its communication, later in the evening, claimed that a notice was served by VPCL of having acquired control of RRPR in lieu of a loan agreement it entered with NDTV founder Radhika and Prannoy Roy in 2009-10. The notice was served without any discussion and RRPR has been given two days to transfer all its equity shares to VCPL. The statement reiterated that VPCL exercised its rights without any input from, conversation with, or consent of the NDTV founders.
"As recently as yesterday, NDTV had informed the stock exchanges that there was no change in the shareholding of its founders. NDTV has never compromised on the heart of its operations - its journalism. We continue to proudly stand by that journalism," it said. (with Agency inputs)
