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#AdaniBuysNDTV : What is an Open Offer?

Adani Buys NDTV DUJ Statement

On October 17, the Adani Group will launch an open offer to acquire 26% shares of NDTV. If the public shareholders of NDTV accept this offer, the Adani Group will become a 55% stakeholder in delhi-based media company.

On August 23, the Adani Group indirectly acquired 29.18 % shares of NDTV. According to SEBI rules, that acquisition triggers an ‘open offer’ to the shareholders to sellout their shares.

Through VCPL, a subsidiary of AMG Media group, Adani Group is placing an open offer to buy 26 % more shares of NDTV. The price in the open offer is at Rs 294 per share. This is a 28% discount, as on 30th August 2022, the price of one share of NDTV is around Rs 471.

This open offer will close on 1st November.

Who owns what in NDTV?

What can ‘Roys’ do now?

Honestly, Roys are not left with many options. Firstly, as they have suggested, they might go to court or get a stay from SEBI on any further acquisition of NDTV shares. The Roys claim the acquisition of RRPR Pvt Ltd by VCPL is breach of contract. Though, the contract isn’t public, so we can’t really say if that option is viable. Earlier, SEBI has stated that Roys had not informed their shareholders about the ‘extraordinary terms’ of their loan agreement with VCPL.

Secondly, Roys can started competitive bidding in the market for the shares. Basically, they can attempt to buy the public shares back to them by bidding against the Adani Groups price.

Hence, this entire acquisition seems like a TV show or even a very dramatic movie. Because, maybe it is. All of us who live in this country, and don’t own a share of NDTV, can wait and hope that independent journalism survives.

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