The Securities and Exchange Board of India (SEBI) indicated Wednesday there is no bar on RRPR Holding Ltd – the promoter entity of New Delhi Television (NDTV), co-founded by Prannoy and Radhika Roy – transferring shares to the Adani Group, which is looking to acquire an initial 29.18 per cent stake in the news broadcaster. This is after internal talks with the legal department, Live Mint reported citing people with direct knowledge of the matter.
On Monday news agency Reuters said the regulatory body had been approached by both parties – NDTV and the Adani Group – to check on restrictions that may prohibit the news network’s founders from selling a majority stake to Gautam Adani’s conglomerate.
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NDTV has argued it needs the regulatory body’s green-light since the Roys were prohibitied from accessing the securities market pursuant to a November 2020 SEBI order. The Adani Group has rejected this position, saying RRPR Holding is not part of the November order.
The promoters of NDTV have also claimed they were unaware of the Adani Group’s intentions till the story broke and that it – the acquisition – was done without their consent.
NDTV and Adani are locked in battle after the latter last week unveiled his plans; India’s richest man first bought out Vishvapradhan Commercial Private Ltd (VCPL) – then owned by Mukesh Ambani’s Reliance – which had given NDTV a loan of over ₹400 crore in 2009/10.
Against that loan VCPL picked up warrants that allowed it to pick up NDTV shares at any time.
According to Live Mint, the terms of the acquisition notice require NDTV to have transferred these shares by August 25. “If shares are still not allotted, Adani may have to opt for arbitration to enforce the agreement,” a person with knowledge of the issue told Live Mint.
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The Adani Group is also expected to launch an open offer in October to acquire an additional 26 per cent stake; the offer is for 1.67 crore equity shares at ₹294 per share.
