- 24 Aug 2022
- ICICIdirect Research
ADANI GROUP ACQUIRES STAKE IN NDTV, LAUNCHES OPEN OFFER
News: Adani Group companies have acquired a stake in NDTV Ltd, indirectly by buying Vishvapradhan Commercial Pvt Ltd (VCPL), an entity which owned convertible debentures in RRPR Holding Pvt Ltd (for a loan amounting to Rs 404 crore, it extended to the promoter holding company in FY10) that, in turn, owned 29.18% of NDTV. The Adani Group and Vishvapradhan have also announced an open offer at Rs 294 per share for 26% stake, representing a 28% discount to NDTV’s Rs 376 closing price.
View: The existing promoter group (Roy family) of NDTV will have a residual stake of 32.3%. They have claimed Adani group firms had acquired the stake without consulting its promoters. Thus, there may be some legal repercussion ahead. The acquisition is in line with Adani group's intent to foray into media and stake acquisition in Quint, recently.
Impact: Neutral.