Adani buys 29% in NDTV, to make open of fer for 26% | India News

MUMBAI:

In a transaction that drew an adverse reaction from the promoters of New Delhi Television (NDTV), the media arm of the Adani Group announced the acquisition of a 29% stake in the company.
AMG Media Networks (AMN) said it would acquire 29% of NDTV through an investor in the channel, Vishvapradhan Commercial. The investor was bought over from two shareholders, Nextwave Televentures and Eminent Networks, for Rs 114 crore on Tuesday. VCPL will have to make an open offer to acquire 26% of NDTV from public shareholders at Rs 294 apiece, entailing a cost of around Rs 483 crore.
Following AMN’s statement, NDTV, in a filing to the stock exchanges, said the announcement came without any intimation to the company and its founders.tnn
If open offer gets through, Adani to own 55% of NDTV
NDTV said a notice was served upon them by VCPL stating that it has exercised its rights to acquire 99.50% control of RRPR. It further said that RRPR had been told to transfer all its equity shares to VCPL within two days.
VCPL holds warrants of RRPR Holding, the investment company of NDTV founders Prannoy Roy and Radhika Roy, which owns the 29% stake in the media house. The Roys in their personal capacity own 32% in NDTV.
Some years ago, in 2009-2010, VCPL was issued warrants by RRPR in exchange for a loan. AMN said VCPL has almost fully acquired RRPR by exercising its right to convert the warrants into a 99.50% stake in the investment company.
As recently as Monday, NDTV had informed stock exchanges that there was no change in the shareholding of its founders or divestment of their stake in the company, it said. However, talk of a change in ownership had fuelled movement in the NDTV stock price in recent weeks.
AMN said upon allotment of shares by RRPR following conversion of warrants, the transaction will result in an indirect acquisition of over 25% in NDTV, triggering an open offer by VPCL under takeover norms. VCPL will have to make an open offer to acquire 26% of NDTV. The open offer price is at a discount to NDTV’s Tuesday closing price of Rs 366 on the BSE. If VCPL gets the entire 26%, then its interest in NDTV will rise to 55%.