Adani to acquire 29.18% stake in NDTV; launch open offer
AMG Media Networks Ltd. (AMNL), a subsidiary of Adani Enterprises, is set to indirectly acquire a 29.18% stake in NDTV. AMNL-owned Vishwapradhan Commercial Private Ltd. (VCPL) has acquired 99.99% stake in RRPR Holding Private Limited, a promoter group company of NDTV with 29.18% stake in the listed news company. VCPL will also launch an open offer to buy up to 26% of NDTV.
VCPL's acquisition of RRPR triggered the open offer
The acquisition of NDTV came into form after VCPL triggered the rights to acquire 99.99% equity shares of RRPR Holding Private Limited, owned by Radhika and Prannoy Roy. RRPR's acquisition by VCPL will trigger an open offer to acquire up to another 26% of NDTV as per SEBI's (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Three firms are offering Rs. 294/equity share
AMNL, VCPL, and AEL (Adani Enterprises Ltd.) have offered a price of Rs. 294/equity shares for the acquisition of up to 1,67,62,530 fully paid-up equity shares of NDTV, as per a BSE filing. According to JM Financial Ltd., which is managing the offer on behalf of the three companies, the offer price "is higher than the price determined in accordance with SEBI regulations."
Acquisition of NDTV a significant milestone for AMNL: CEO
About the acquisition of NDTV, AMNL's CEO Sanjay Pugalia said that the "acquisition is a significant milestone" for the company. "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.
NDTV recorded a revenue of Rs. 423 crore in FY22
NDTV is one of the leading news networks in India with three national news channels, including NDTV 24x7, NDTV India, and NDTV Profit. In FY22, the company recorded a revenue of Rs. 423 crore with a net profit of Rs. 85 crore. It had an EBITDA of Rs. 123 crore. The network has over 35 million followers across different platforms.