Adani Group NDTV Launch Open Offer: Adani Enterprises has made a move to acquire a controlling stake in news network NDTV Ltd in a hostile takeover. Adani’s media unit AMG Media Networks Ltd has exercised the rights to convert the outstanding loan to NDTV’s holding company, resulting in acquisition of a 29.18% stake in NDTV. Thereafter, Adani unit will launch an open offer to buy another 26% stake from shareholders at Rs 294 per share, the company said in stock exchange filings. Earlier today, NDTV share price jumped 5% to close at Rs 376.55 on NSE, ahead of the news.

Vishvapradhan Commercial Private Limited (VCPL) – a wholly owned subsidiary of AMG Media Networks Limited (AMNL), owned by Adani Enterprises Limited (AEL), holds warrants of RRPR Holding Private Limited, which is a promoter group company of NDTV, entitling it to convert them into 99.99 per cent stake in RRPR. RRPR holds 29.18 per cent stake in NDTV. VCPL has converted those warrants into equity shares. This development will trigger an open offer to acquire up to further 26 per cent stake in NDTV in terms of SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The open offer by VCPL to acquire up to 16,762,530 fully paid up equity shares, constituting 26 per cent of the voting share capital of NDTV from the public shareholders is being made at Rs 294 per equity share, which has been determined in accordance with SAST Regulations. Upon exercise of 1,990,000 warrants, RRPR is obligated to allot 1,990,000 equity shares of RRPR to VCPL within 2 business days from the date of Warrant Exercise Notice, i.e., by 25th August, 2022, the company said in the filing.

NDTV operates three national news channels – NDTV 24×7, NDTV India and NDTV Profit. It also has an online presence and its news handles on social media have more than 35 million followers across various platforms. NDTV recorded a revenue of Rs 421 crore with an EBITDA of Rs 123 crore and net profit of Rs 85 crore in FY22 with negligible debt.

“This acquisition is a significant milestone in the journey of AMNL’s goal to pave the path of new age media across platforms,” said Sanjay Pugalia, CEO, AMG Media Networks Limited. “AMNL seeks to empower Indian citizens, consumers and those interested in India, with information and knowledge. With its leading position in news and its strong and diverse reach across genres and geographies, NDTV is the most suitable broadcast and digital platform to deliver on our vision. We look forward to strengthening NDTV’s leadership in news delivery,” he added.