The Adani Group on Tuesday said it will buy a majority stake in NDTV, a high-profile Indian news house, in an apparent hostile takeover as billionaire Gautam Adani expands his media ambitions.
AMG Media Networks, a unit of Adani, will indirectly buy a 29.18% stake in New Delhi Television and launch an open offer to buy another 26% stake, the Indian conglomerate said. The open offer price is expected to be $61.77 million.
Founded three decades ago, NDTV is one of India’s most popular news organizations and a rare asset that has consistently taken a critical view of the ruling government’s efforts.
The New Delhi-headquartered business, which operates three TV news channels and has a large presence on the web, said on Tuesday that neither the firm nor its founders held any talks, consent or input for a majority stake acquisition. Gave.
“Without any discussion with New Delhi Television Limited (NDTV) or its founder-promoters, a notice has been served to them by Vishwapradhan Commercial Private Limited (VCPL), stating that it (VCPL) has acquired 99.50% control RRPR Holding Private Limited (RRPRH), a promoter-owned company which owns 29.18% of NDTV. Notice of VCPL, loans made with Radhika and Prannoy Roy, founders of NDTV in 2009-10 Based on the agreement, the notice states that VCPL has transferred 19,90,000 warrants to RRPRH equity shares of Rs.10/- per share, and a total of Rs.1.99 crore to RRPRH,” NDTV said.
The acquisition comes as Asia’s richest man is trying to dive into media assets and compete aggressively with oil-to-telecom giant Reliance Industries chairman Mukesh Ambani on another opportunity. Ambani is the owner of Media Property Network18.
Sanjay Puglia, CEO, AMG Media Networks, said in a statement, “This acquisition marks a significant milestone in AMNL’s journey towards paving the way for a new age of media.”
“AMNL seeks to empower Indian citizens, consumers and those interested in India with information and knowledge. With its leadership position in news and its strong and diverse reach across genres and geographies, NDTV is the best-suited broadcast and digital platform to fulfill our vision. We look forward to reinforcing NDTV’s leadership in news distribution.”