Business
Adani Group Gains Control Over 29.18% Promoter Equity In NDTV As Roys Transfers 99.5% Shares Of RRPR Holdings To VCPL
- In a recent interview to The Financial Times, Gautam Adani, chairman of the Adani group, said the proposed acquisition of NDTV was a “responsibility” rather than a “business opportunity” for him, and invited NDTV owner-founder Prannoy Roy to remain its head.
Adani-NDTV Takeover
RRPR Holding Pvt Ltd, the promoter entity of New Delhi Television Ltd (NDTV) controlled by founders Prannoy Roy and Radhika Roy, on Nov 28 (Monday), notified the regulators that it had transferred 99.5 per cent of its equity capital to Vishvapradhan Commercial Pvt Ltd (VCPL), which is owned by AMG Media Network Ltd (AMNL), the media arm of Adani group.
The transfer of shares will give the ports-to-energy conglomerate control over the current promoter equity of 29.18 per cent via RRPR Holding in NDTV.
The port-to-power conglomerate is also conducting an open offer for another 26 per cent stake in the media firm.
The open offer, which commenced on Nov 22, has seen shareholders tender 5.3 million shares, or 31.78 per cent of the issue size of 16.7 million shares, so far, the exchange data showed. The offer, with a price band of Rs 294 per share, will close on Dec 5. If fully subscribed, the open offer will amount to Rs 492.81 crore.
Adani Group bought VCPL from its owners for Rs 113 crores and decided to exercise the right to exercise the warrants and gain control of RRPR. RRPR had taken a distress loan of Rs 400 crore from VCPL over a decade ago. The terms of the loan agreement allowed VCPL to acquire a 29.18 per cent stake in NDTV if the loan was not repaid.
On Aug 23, VCPL announced that it had exercised rights to acquire 29.18 per cent of NDTV through the conversion of warrants into an equity stake in RRPR Holding.
NDTV promoters had earlier raised concerns about VCPL allegedly not taking permission from the Roys to exercise the warrants. It had also said that NDTV’s promoters were barred from the stock markets, making the transaction with RRPR non-compliant with rules. However, SEBI’s go-ahead meant that the regulator had found no merit in NDTV’s arguments.
LTS Investment Fund Limited, an offshore institutional investor, currently owns 10 per cent of the company. LTS Investment Fund has invested solely in four of Adani Group’s listed companies.
In a recent interview with The Financial Times, Gautam Adani, chairman of the Adani group, said the proposed acquisition of NDTV was a “responsibility” rather than a “business opportunity” for him and invited NDTV owner-founder Prannoy Roy to remain its head.
Like several other large conglomerates, Adani Group has been interested in the media space for a while. In May, it bought a 49 per cent stake in Quintillion Media Private Limited through its subsidiary AMG Media Networks Limited.
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