Adani Group’s open offer for NDTV to launch on November 22

Group had previously rejected claims that the stake sale would require clearance from tax authorities

Gautam Adani.: File photo

TT Bureau   |   Mumbai   |  13.11.22: The Adani group on Friday announced a revised timeline for its proposed open offer to acquire a 26 per cent public shareholding in NDTV, the news broadcaster said in a regulatory filing with the stock exchanges.

According to the filing, the Adani open offer is now proposed to open for subscription on November 22 and will close on December 5.

The previous timeline for the open offer by Adani was October 17 to November 1.

In August, Gautam Adaniled entities had acquired a lesser known company called Vishvapradhan Commercial Pvt Ltd (VCPL), which had lent over Rs 400 crore to NDTV founders.

VPCL had lent the amount more than a decade ago in exchange for warrants that allowed it to acquire a stake of 29.18 per cent in NDTV at any time.

VCPL with AMG Media Networks and Adani Enterprises have proposed to acquire an additional 26 per cent or 1.67 crore equity shares at an offer price of Rs 294 per share.

NDTV promoters had contested the open offer and the acquisition of VCPL stake, asserting that the deal cannot go ahead without Sebi’s nod as well as that of the income tax department.

The Adani group had previously rejected claims that the stake sale would require clearance from tax authorities.

The promoters of NDTV had claimed that they were completely unaware of the takeover and it was done without their consent.

After the transaction, the acquirer (Adanis) will not directly hold any equity shares of the target company (NDTV) but shall own at least 99.50 per cent and up to 100 per cent of the paid-up share capital of the promoter company (RRPR Holdings).

Meanwhile, NDTV and its subsidiary, NDTV Networks Ltd, are putting on hold the proposed sale of their stake constituting 20 per cent of the total share capital of Astro Awani Network Sdn Bhd, a media company in Malaysia.

The Central Bureau of Investigation has withheld for now its approval of the transaction vide its letter dated November 9.