Gautam Adani media unit on Tuesday acquired 29.18 per cent of NDTV Ltd. and alleged to acquire another 26 per cent of the company.
- NDTV claims the acquisition was accomplished without the conversation or consent of NDTV founders Prannoy Roy and Radhika Roy. The duo continues to hold 32.36 per cent stakes of the media channel.
Richest Person, Gautam Adani media unit on Tuesday proclaimed it will buy a majority stake in the nation’s popular news channel New Delhi Television.
Indian billionaire Gautam Adani led Adani group acquired a 29.18 per cent stake in TV news channel NDTV Ltd. on Tuesday. Adani group, AMG Media Networks Ltd (AMNL) further also asserted that it also seeks to acquire another 26 percent of the company. For this, the Adani-led conglomerate will soon launch an open letter as requisite by the Securities and Exchange Board of India (SEBI).
This acquisition by Adani Group(AMNL) is being considered one of the most high-profile bets by the billionaire in the vibrant media sector.
However, the owners of the leading and popular news channel inquired about this. They said they were completely unaware of the acquisition being accomplished until it was done on Tuesday.
NDTV claims the acquisition was accomplished without the conversation or consent of NDTV founders Prannoy Roy and Radhika Roy. The duo continues to hold 32.36 per cent stakes of the media channel.
Adani’s mission to boost it’s media investments
Being a billionaire, the Adani group seeks to boost its media investments with a Television channel as part of an ambitious expansion plan.
Earlier, AMG Media Networks Ltd (AMNL) in May this year acquired 49 per cent stakes in digital news provider BloombergQuint. The company was linked to his rival billionaire Mukesh Ambani.
Developments that led to the acquisition of News Daily Television(NDTV)
AMNL wholly owned the subsidiary VCPL(Vishvapradhan Commercial Private Limited) which had the licence to NDTV’s promoter group company RRPR Holding Private Ltd (RRRR). Hence, the Adani group was entitled to convert them into a 99.99 percent stake in RRPR. AMNL exercised the option of acquiring 99.5 percent stakes in RRPR and gained authority over it. This RRPR acquired 29.18 per cent stakes of the NDTV.
Before announcing this NDTV takeover on Tuesday, Adani Group notified stock exchanges that AMG Media Networks has acquired 100% shares of VCPL. Adani Group then went further acquiring the assets of NDTV in exchange for a loan from VCPL.
It is being claimed that VCPL along with AMNL and AEL (Adani Enterprises Ltd) will further introduce an offer letter. This offer letter will be in accordance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 for acquiring another 26 per cent of the NDTV.
AMNL is a 100% subsidiary of Adani Enterprises Ltd (AEL), a multinational conglomerate founded by Gautam Adani. NDTV has three news channels and a digital platform.
“This acquisition is a significant milestone in the journey of AMNL’s goal to pave the path of new age media across platforms,” said Sanjay Pugalia, chief executive officer, AMG Media Networks Ltd in a statement. AMG Media Networks is owned by Adani Enterprises.
AMNL seeks to empower Indian citizens, consumers and those interested in India, with information and knowledge. NDTV with its favored position in news and reaching across India’s geographic and covering various genres is the most suitable broadcast and digital platform to deliver their vision, he added.
NDTV is considered the most credulous channel in the country which has often been seen criticizing the government. Also, one in which Modi has never participated ever since he came into power.
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