Adani Group Gets SEBI Nod For Open Offer To Buy Additional 26 Per Cent Stake In NDTV
Market regulator Security and Exchange Board of India (SEBI) has approved the open offer by Adani Group to buy an additional 26 per cent stake in NDTV.
The Security and Exchange Board of India (SEBI) approved Adani Group’s open offer, Livemint cited a statement on SEBI's website.
The SEBI Nod will enable Adani to buy more equity from the media company's minority shareholders.
Adani group’s initially planned to launch its open offer last month, but the plan was delayed as it awaited Sebi's approval.
The billionaire’s ports-to-power conglomerate triggered a hostile takeover bid for the broadcaster in August after it acquired an indirect 29.18 per cent stake in August.
Vishvapradhan Commercial Private Limited (VCPL), a newly acquired wholly owned subsidiary of Adani Group's AMG Media Networks Limited (AMNL), had loaned Rs 403.85 crore to NDTV promoter company RRPR Holding Pvt Ltd in 2009 and 2010.
RRPR Holding, which was a promoter group entity and then held only 7.56 per cent stake in NDTV, took the loan on behalf of NDTV from VCPL in two tranches (Rs 350 crore in July 2009 and another Rs 53 crore in January 2010).
RRPR Holding was owned by NDTV founder Pranav Roy and Radhika Roy.
Against this interest-free loan, RRPR issued warrants to VCPL entitling it to convert them into a 99.9 per cent stake in RRPR.
After acquiring VCPL, Adani Group exercised the rights to acquire 99.5 per cent of the equity shares of RRPR Holding Private Limited, a promoter group company of NDTV.
It had also announced to launch an open offer for additional 26 per cent stake in the media company.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.