Adani Group’s media arm- AMG Media Networks Limited (AMNL) is set to indirectly acquire 29.18% of New Delhi Television (NDTV). The acquisition will be made through Vishvapradhan Commercial Private Limited (VPCL), a wholly owned subsidiary of AMG Media Networks Limited, owned by Adani Enterprises Ltd.
“VCPL has exercised the rights to acquire 99.5 percent of the equity shares of RRPR Holding Private Limited, a promoter group company of NDTV which holds 29.18 percent stake in the media group,” a press statement from the business entity read.
In terms of SEBI’s takeover regulations, this would trigger an open offer to acquire up to 26 percent stake in NDTV. A Bombay Stock Exchange filing said that the open offer is at Rs 294 per equity share aggregating to a total consideration of up to Rs 492.8 crore payable in cash.
Investment banking firm JM Financial said that the offer price is higher than the price determined in accordance with Regulation 8(2) of the SEBI (SAST) Regulations.
However, the Adani Group is happy with the take-over, which it sees as a “significant milestone” in the company’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 … We look forward to strengthening NDTV’s leadership in news delivery,” Pugalia added.
Meanwhile, Twitteratis reacted to the development. While some made fun of Ravish Kumar and Gautam Adani, others commented what the development would mean in terms of nexus between the government and Adani Group.
*Adani Group to purchase 29.18% stake in media group #NDTV#Adani to Ravish Kumar : pic.twitter.com/xdmRmgKvUR
— Paras Jain (@_paras25_) August 23, 2022
Looks like a hostile takeover #Adani #NDTV pic.twitter.com/53Lggl0gYv
— Chandra R. Srikanth (@chandrarsrikant) August 23, 2022
Following the development, the shares of NDTV closed at Rs 374.70 apiece at the Bombay Stock Exchange, which was about 5% higher as compared to the previous day’s close. At the NSE, the shares surged by 3.09 percent to close at Rs 369.75 apiece.
Reference: Business World, Twitter
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