Adani  Acquires  29%  Stake In NDTV Indirectly, An Hostile Takeover

Adani acquired 29% stake in NDTV indirectly & launched another 26% open offer. NDTV was controlled by an Ambani aide. Read the complete story of this hostile takeover.

Asia’s richest man, Gautam Adani, made a significant bid for the media and entertainment market in India by acquiring a 29% stake in broadcaster NDTV Ltd. through his firms and launching an open offer to purchase another 26% from shareholders, as required by law.

The purchase put an end to months of rumors about a potential acquisition, which caused the price of NDTV shares to increase fivefold in 9 months (from $75.55 on December 1 to $376.55 on Tuesday on BSE).

By purchasing Vishvapradhan Commercial Pvt. Ltd. (VCPL), which held convertible debentures in RRPR Holding Pvt. Ltd., which in turn held 29.18% of NDTV Ltd, Adani Group companies indirectly acquired the holding in NDTV. 

In exchange for a loan it provided to the promoter holding firm in the sum of 404 crore, Vishvapradhan purchased the debentures in 2009–2010.

An organization that purchases over 25% of the equity in a publicly listed firm is required by Indian securities law to make an open offer to public shareholders to purchase the remaining 26%. 

According to Sebi’s takeover procedures, Adani Group with Vishvapradhan declared an open offer on Tuesday for 294 rupees per share, or 28% less than NDTV’s closing price of 376 rupees on the same day.

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NDTV, which claimed that Adani group entities had purchased the shareholding without contacting its promoters in a disclosure to the exchanges on 23rd August evening, immediately objected to the acquisition.

The NDTV founders and the firm would like to clarify that this operation of rights by VCPL was carried out without the input, discussion, or approval of the NDTV founders, who, like NDTV, were only made aware of this exercise of rights today.

Despite being the subject of market conjecture even before the Adani company formally declared its entrance into media in March of this year, Adani’s acquisition of a stake in the well-known broadcaster was suddenly revealed in exchange documents released in rapid succession on Tuesday evening. 

In response to a media inquiry, NDTV stated in exchanges on Monday that its promoters were not involved in any discussions regarding the sale of a stake. 

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Tuesday night, Mahendra Nahata-affiliated Eminent Networks and Nextwave Televentures said they had bought Vishvapradhan from Adani Enterprises’ fully owned subsidiary Adani Media Networks.