Adani Group on Wednesday said it remains committed to the open offer to buy an additional 26% stake in NDTV and asked the Securities & Exchange Board of India (Sebi) to provide its observations in the matter. The development comes after Gautam Adani-led conglomerate missed the deadline to launch the open offer. The deadline to launch the open offer was October 17.
“The decision to acquire NDTV was arrived at in furtherance of the Adani Group’s objective to set up a credible next generation media platform with emphasis on digital and broadcast segments, and that NDTV is a suitable broadcast and digital platform to deliver on this vision,” said Adani Enterprises in a regulatory filing on Wedneday.
“VCPL re-affirms its commitment to completing the Open Offer process (pending consummation of the Underlying Transaction) and SEBI has been requested to provide its observations on the Draft Letter of Offer filed in relation to the Open Offer, in accordance with the SEBI (SAST) Regulations,” the Adani Group company filing added.
The Adani group initiated steps to takeover the NDTV by issuing an open offer for 26 per cent stake in the former and also by exercising its right to convert the share warrants issued by RRPR Holding Private Ltd. On August 23, 2022, Adani group’s AMG Media Networks announced its subsidiary VCPL decision to exercise its rights to acquire 99.5 per cent of equity shares of RRPR, the investment company of NDTV promoters – Prannoy Roy and Radhika Roy.
VCPL holds 1,990,000 warrants of RRPR Holding entitling it to convert them into 99.99 per cent stake in the latter.
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The VCPL has exercised its option in part, resulting in acquisition control of RRPR Holding — 1,990,000 equity shares or 99.50 per cent.
RRPR Holding holds 29.18 per cent stake in NDTV that has three national television channels.
This triggered the issue of open offer to acquire shares of NDTV from the public as per SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
In August, Adani Group bought Vishvapradhan Commercial Private Ltd (VCPL), which had lent Rs 400 crore to NDTV more than a decade ago. The VPCL deal with NDTV was that the former could acquire 29.18% stake in the latter “at any time”. After Adani brought VPCL, the company on October 17 launched an open offer to acquire another 26% from NDTV’s minority stakeholders.
NDTV’s owners contended that the deal cannot go ahead without approval of Sebi and the IT department. The Adani Group claimed that deal does not require clearance from the I-T department.
