Adani Group Gets Sebi Nod For NDTV Open Offer Boosting Takeover Bid

Adani Group revised the offer’s roll out date to November 22. It will close on December 5, NDTV said last week

Gautam Adani, the owner of Indian conglomerate Adani Group, received the regulatory approval to float an open offer for a further 26 per cent stake in New Delhi Television Ltd. (NDTV), marking a crucial milestone in a takeover battle between Asia’s richest person and the broadcaster’s founders, news agency Bloomberg reported on Tuesday.

According to the report, the capital market regulator Securities and Exchange Board of India (Sebi) approved Adani Group’s open offer, allowing Adani to buy more equity from the media firm’s minority shareholders.

The conglomerate revised the offer’s roll out date to November 22. It will close on December 5, NDTV said last week. Initial plan of Adani Group was to launch its open offer last month, however, was delayed as it awaited Sebi's nod.

The billionaire’s ports-to-power conglomerate triggered a hostile takeover bid for the broadcaster after it acquired an indirect 29.18 per cent stake in August.

Prannoy Roy and Radhika Roy, the promoters of NDTV, have opposed the bid, amid concerns that the transaction will erode press freedom in the world’s largest democracy given the powerful tycoon’s perceived close relationship with Prime Minister Narendra Modi.

Adani is now one step closer to gaining a larger footprint in India’s media sector.

Gautam Adani, whose personal fortune valued at almost $138 billion has gained the most globally this year, is rapidly diversifying his empire beyond its cornerstone of coal mining and ports to branch into airports, data centres, cement, and digital services.

Adani Group has offered to buy NDTV shares at Rs 294 ($3.6) each, while the media firm’s stock closed 24 per cent higher at Rs 364.85 on the bourses on Monday.

In August, Adani Group’s media subsidiary had said that it would acquire a 29.18 per cent stake in NDTV.

Adani Group said that the acquisition of 29.18 per cent stake will be indirect and it will be made through Vishvapradhan Commercial Pvt Ltd (VCPL), a wholly-owned subsidiary of AMG Media Network Ltd (AMNL), owned by Adani Enterprises Ltd (AEL).

VCPL has exercised warrants to acquire 99.5 per cent stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR, which is a promoter group company of NDTV, holds 29.18 per cent stake in the media firm.