The Adani group is now the largest shareholder of NDTV after first buying out a company backed by the founders and then purchasing more shares on the open market.
(Image Source: Tribune India)
New Delhi Television Limited founders have stated that they are going to sell the majority of their stake in the company to the Adani group. The founders, Prannoy Roy and Radhika Roy made a joint statement to the stock exchanges, stating their intent.
NDTV Founders Statement
They said that they hoped that Gautam Adani of the AMG media network would preserve the values of New Delhi Television that it stands for. The statement read that the AMG Media Network is now the single-largest shareholder in New Delhi Television Limited, after the recent Open Offer. Thus, with mutual agreement, they have decided to divest most of their shares in NDTV to the AMG Media network.
According to the duo, all conversations with Adani have been constructive, and he has accepted all suggestions with openness and positivity.
(Image Source: Scroll.in)
The two founders now hold a 32.26 percent stake in New Delhi Television Limited while the Adani group currently has a 37.44 percent stake in the company. The couple plans to sell 27.26 percent of their stake while holding onto about a 5 percent minority of the company.
The result
The Adani group is already the largest majority shareholder of NDTV after they bought a company backed by the founders and then they bought up more shares of NDTV on the free market.
The founders stated that they founded NDTV with the belief that journalism in India was already excellent, but that a strong system of broadcast networks was needed to help the country grow and shine. They founded New Delhi Television Limited in 1988.
“After 34 years, we believe that NDTV is an institution that has met so many of our hopes and ideals; we are so proud and grateful that across the globe, It is recognized as India’s and Asia’s Most-Trusted News Broadcaster,” they added in the statement.
They said that NDTV is a brand that is synonymous with credibility and trust with the Indian public. They said that it is an independent brand and that they hope that this close relationship with the public continues forward. The Adani group will need to preserve and maintain the relationship with the public and assume the responsibilities required for this role. The founders are looking forward to seeing the next phase of NDTV in different hands. Shares for NDTV have climbed 16 percent since the bid by the Adani group commenced.
Prannoy Roy and Radhika Roy, the founders of NDTV, resigned as directors on the company’s board on the 29th of November. They founded RRPR Holdings Private Limited, which the Adani group bought on August 23, along with the company’s 29.18 percent stake in NDTV.
What does this mean for the news?
(Image Source: Newslaundry)
Ravish Kumar, the senior executive editor at NDTV, resigned one day after the founders. He has been given the Ramnath Goenka Excellence in Journalism Award twice, and the Ramon Magsaysay Award in 2019. He has been critical of the government in the past, some posit that his resignation is due to fears of censorship by new corporate overlords who do not wish to attract any ire.
