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The media arm of Adani Group announced on 23 August that it is going to buy 29.18 percent shares of RRPR holdings which is a promoter company of NDTV Group. They also made an open offer to acquire 26 percent shares of NDTV Media Limited.
Adani Group will hold a 29.18 percent stake in New Delhi Television Limited, one of the oldest media houses in the country, through Vishvapradhan Commercial Pvt Ltd, a subsidiary of Adani Media Network Limited.
In fact, these stakes are being acquired indirectly, VCPL is buying 99.5% shares of RRPR Holding Private Limited, which is the promoter group company of NDTV. This company has 29.18 percent shares in NDTV. That is, Adani Group has not directly bought NDTV but its promoter group company.
It also triggers an open offer to buy 26 percent of NDTV's shares, based on SEBI's takeover regulation.
Statement By NDTV
Without any discussion with New Delhi Television Limited (NDTV) or its founder-promoters, Radhika and Prannoy Roy, a notice was served upon them by Vishvapradhan Commercial Private Limited (VCPL) stating that it (VCPL) has acquired control of RRPR Holding Private Limited (RRPRH). This entity owns 29.18% of NDTV. It has been given two days to transfer all its equity shares to VCPL.
VCPL has exercised its rights based on a loan agreement it entered with NDTV founders Radhika and Prannoy Roy in 2009-10.
The NDTV founders and the Company would like to make it clear that this exercise of rights by VCPL was executed without any input from, conversation with, or consent of the NDTV founders, who, like NDTV, have been made aware of this exercise of rights only today. As recently as yesterday, NDTV had informed the stock exchanges that there was no change in the shareholding of its founders.
NDTV has never compromised on the heart of its operations - its journalism. We continue to proudly stand by that journalism.
Why is Adani interested in NDTV?
"This acquisition will prove to be a milestone in the AMNL's path of developing a new-age media. NDTV is a suitable broadcast and digital medium of news. 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 and digital platform to deliver on our vision. We look forward to strengthening NDTV’s leadership in news delivery,"
AMNL CEO Sanjay Pugalia
NDTV currently has NDTV 24x7, NDTV India, and NDTV Profit broadcast media channels and the online presence of this media group is phenomenal. The company has been profitable for the past several years. In the financial year 2022, it achieved a revenue of 421 crores. In which the net profit of the company was around 85 crores.
The purchase of NDTV by Adani has shocked the audience of NDTV as it is the only news channel in the country that is critical of every government. It is the only news channel that still follows the basic principles of journalism and delivers ground news to the people without spreading sensationalism. Adani's stake in the channel creates fears that NDTV may now become Godi Media like other news channels.
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