On August 23, The Adani group announced the acquisition of a 29.18 percent stake in NDTV through the acquisition of VCPL, which holds a 99.99 percent stake in RRPR Holding.
NDTV founders took 4 billion rupees ($50 million) in loans from VCPL, and in exchange issued warrants that allowed the company to acquire a 29.18% stake in the newsgroup.
But all of it was going in loss, So Mukesh Ambani left that, and Gautam Adani Acquire 29% of the stakes of NDTV. Adani Group will launch its open offer on October 17 for acquiring an additional 26 percent stake in media firm NDTV.
How Does Gautam Adani able to acquire more stakes in NDTV?
As per SEBIs rule, if someone could able to acquire more than 25% of stakeholding in someone’s company.
They have the right to acquire more by putting an offer to the shareholders. So, Gautam Adani has put the offer of Rs 294 per share by offering to acquire 26% more of NDTV which is 20% lesser than the existing value of NDTV shares.
Adani Group’s indirect control of a stake above 25% means it must put forward an open offer to purchase at least 26% more from existing shareholders in NDTV to give them an opportunity to exit, according to Indian regulations.
That’s what Adani did. Laying out its plan, the Adani Group said the open offer will be at 294 rupees per NDTV share for a total consideration of up to $62 million.
If the two-stage plan works, Adani Group would get 55.18% of the popular news network. Although NDTV has said Adani’s move was without its consent.
Terming the contentions raised by RRPR Holdings as “baseless, legally untenable and devoid of merit”, VCPL had said the holding firm is “bound to immediately perform its obligation and allot the equity shares” as specified in the Warrant Exercise Notice.
Now NDTV owners have only two options here to save their Company is that they could offer better value of their shares to the shareholder to save their company or they could let Adani take over the hostility of their company by losing control of their company.
What do you think, will NDTV owners be able to save their company or Gautam Adani will take over the NDTV?
