Adani to acquire 29% stake in NDTV, makes open offer for additional 26%
Adani-owned VCPL has exercised warrants to acquire a 99.5% stake in NDTV's promoter group company RRPR
AMG Media Networks Limited (AMNL), a wholly owned subsidiary of Adani Enterprises, will indirectly acquire a 29.18% stake in NDTV and will launch an Open Offer to acquire an additional 26% from the company's shareholders. NDTV owns and operates three leading national channels and a strong digital platform.
Vishvapradhan Commercial Private Limited (VCPL), a wholly owned subsidiary of AMNL, has exercised the rights to acquire 99.5% of the equity shares of RRPR Holding Private Limited, a promoter group company of NDTV.
The acquisition will trigger an open offer to acquire up to a 26% stake in NDTV in terms of SEBI’s Takeover Regulations. VCPL intends to acquire up to 16,762,530 fully paid-up Equity Shares, constituting 26% of the Voting Share Capital, at a price of Rs 294 per Offer Share aggregating to a total consideration of up to Rs 492.8 crore.
“This acquisition is a significant milestone in the journey of AMNL’s goal to pave the path of new age media across platforms. 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," stated AMG Media Networks CEO Sanjay Pugalia.
AMNL’s wholly owned subsidiary VCPL holds warrants of RRPR Holding Private Limited (RRPR) entitling it to convert them into a 99.99% stake in RRPR. VCPL has exercised warrants to acquire a 99.5% stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR.
RRPR is a promoter group company of NDTV and holds a 29.18% stake in the company. VCPL, along with AMNL & AEL (persons acting in concert), will launch an open offer to acquire up to 26% stake in NDTV, in compliance with the requirements of the SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
NDTV recorded a revenue of Rs 421 crore with an EBITDA of Rs 123 crore and a net profit of Rs 85 crore in FY22 with negligible debt.
In March, AMG Media Networks acquired a 49% stake in Raghav Bahl's Quintillion Business Media, which runs a business and financial news digital platform called BQ Prime, formerly known as Bloomberg Quint.
