Adani Group has fixed the date for the open offer to get an additional 26 per cent stake in NDTV
1.67 crore equity shares to be acquired through open offer
VCPL, along with AMG Media Networks and Adani Enterprises Ltd, has offered to acquire an additional 26 per cent stake or 1.67 crore equity shares at an offer price of Rs 294 per share.
How Adani got stake in NDTV
AMG Media Networks Limited (AMNL) is a media company of the Adani Group. AMNL is a 100% subsidiary of Adani Enterprises Limited (AEL). Vishwapradhan Commercial Private Limited (VCPL) is a wholly owned subsidiary of AMNL. VCPL has acquired 99.5 per cent equity shares of RRPR Holdings Pvt Ltd, a promoter group company of NDTV. RRPR Holdings held 29.30 per cent stake in NDTV. Thus the stake of NDTV came to the Adani Group.
Why is an open offer needed?
Adani Group currently holds the largest stake in NDTV at 29.30 per cent. But until 51 per cent or more of the stake does not come to Adani, the ownership will not be available. After the Adani Group holds 29.30 per cent stake, it has the right to make an open offer under the rules. He wants to buy an additional 26 per cent stake from other shareholders of the company by making an open offer. In this way, Adani will get a total 55.3 per cent stake in NDTV and will get ownership.
NDTV got an outstanding debt
The Adani Group has an outstanding debt on the back of NDTV’s stake coming in. This loan was taken by NDTV founder Prannoy and Radhika Roy in 2009-10 from a company linked to Mukesh Ambani. Vishwapradhan Commercial Private Limited (VCPL) had given a loan of Rs 403.85 crore to RRPR Holding Private Limited, the promoter company of NDTV. In lieu of this interest free loan, RRPR issued warrants to VCPL. According to this warrant, if the company fails to make the payment, the lender will have the right to take 99.9 per cent stake in the RRPR. The ownership of VCPL changed in 2012. The Adani Group firm first acquired VCPL and then exercised the option to convert the outstanding debt into a 29.18 per cent stake in the media company.
