Adani Group-NDTV Deal: Revealed | Control Of Radhika Roy Prannoy Roy Holdings, Open Offer | How Did It Happen?
January 9, 2023: Adani-NDTV deal: Disclosure – In a major development, Asia’s richest man Gautam Adani‘s group on Tuesday said it will pay NDTV shareholders an additional Rs. 48.65 per share will be paid by those who tendered their shares in their open offer to help match what they paid to buy them. Founders share of news broadcaster.
Adani Enterprises said in a stock exchange filing that it will pay investors an additional Rs. 48.65, who sold their shares in the open offer between November 22 and December 5, bringing the payout to Rs. 342.65 and will match what he paid. To buy the shares of Pranaya Roy and Radhika Roy.
– The Adani Group first acquired Vishwapradhan Commercial Private Limited, a lesser-known company that acquired RRPR Holdings for Rs. 403 crore in an interest-free loan – a company founded by Roy and bearing his initials – in 2009-10 in exchange for warrants that allowed him to buy a stake in the newsgroup at any time.
-The Adani group exercised those rights in August last year, which NDTV said at the time was done without its consent.
– Accordingly, the Adani Group acquired control of RRPR Holdings, which holds 29.18 per cent stake in NDTV. Subsequently, it made an open offer to acquire an additional 26 percent from public shareholders.
-The open offer was made at a price of Rs 294 per share. And even though the open offer was priced at a deep discount to the stock’s trading price, it found investors willing to sell more than 53 lakh shares, or an 8.27 percent shareholding.
-The twin transactions gave the Adani group a larger stake in the firm than that held by founder Prannoy Roy and his wife Radhika.
-And last week, the Adani group bought 27.26 per cent of the 32.26 per cent stake it bought in Roy’s company for Rs. 342.65 per share.
In total Roy received 602 crore rupees.
Prannoy Roy owns 15.94 per cent stake in NDTV, of which, he has sold all remaining stake except 2.5 per cent shareholding. His wife Radhika Roy also sold all but 2.5 percent of her 16.32 percent stake in NDTV.
– The Adani group now owns 64.71 per cent stake in New Delhi Television Limited (NDTV), according to a regulatory filing.
– After that, Royce resigned from the NDTV board. Prannoy Roy was the chairperson of the company.
-The Adani group, which appointed two directors to the NDTV board following the acquisition of Radhika Roy Prannoy Roy (RRPR) Holdings Pvt Ltd, replaced them with two more of its nominees.
-He has appointed retired IAS officer Sunil Kumar and former civil servant Aman Kumar Singh to the board of NDTV.
– Both served under BJP’s Raman Singh who was Chief Minister of Chhattisgarh from 2003 to 2018.
-While Sunil Kumar retired as Chhattisgarh Chief Secretary in 2014, Aman Singh, who was Chief Secretary to former Chhattisgarh Chief Minister Raman Singh, resigned from the service in 2018 after the BJP lost power.
– Sunil Kumar’s exact role in the Adani Group is not known, Aman Singh is the Head of Corporate Communications.
– The Adani group had earlier named Sanjay Pugalia and Senthil Sinnia Chengalvarayan as its directors on the NDTV board.
– Puglia, a former journalist, is Chief Executive Officer and Editor-in-Chief of Media Initiatives at the Adani Group.
Chengalvarayan, a journalist, is an independent director at Quintillion Business Media Pvt., another media firm in which Adani bought a stake last year.
-NDTV will give the Adani group a foothold in the media space as part of its broader diversification that has expanded the conglomerate into airports, data centers, cement and digital services beyond coal mining and ports.
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