Indian billionaire Adani seeks to control NDTV, media group says move without consent.

New Delhi Television Ltd (NDTV) on Tuesday said there was no consent from its founders for the exercise of rights by Vishvapradhan Commercial Pvt Ltd (VCPL) to acquire 99.50 percent control of RRPR Holding Pvt Ltd (RRPRH), the promoter company that holds 29.18 percent stake in the media group.

The rights were “executed without any input from, conversation with, or consent of the NDTV founders”, the company informed the stock exchanges.

The statement came shortly after AMG Network Ltd (AMNL), the media arm of Indian conglomerate Adani Group, said its affiliated entity VCPL would acquire a 29.18 percent stake in NDTV, and would launch an open offer for another 26 percent stake.

VCPL has “exercised the right to acquire 99.5 percent of the equity shares of RRPR Holding”, and this will “trigger an open offer to acquire up to 26 percent stake in NDTV”, AMNL stated in a release.

NDTV, in its regulatory filing, said the notice from VCPL is based on a loan agreement it entered with NDTV founders Radhika and Prannoy Roy in 2009-10. “The notice states that VCPL has exercised its option to convert 19,90,000 warrants into equity shares of RRPRH at Rs 10 per share, and that a total of Rs 1.99 crores has been transferred to RRPRH,” the media company added.

NDTV further claimed that its founders were “made aware of this exercise of rights only today”, adding that as recently as August 22, the exchanges were informed that “there was no change in the shareholding of its founders”.

On VCPL’s open offer, NDTV noted that it has received a copy of the public announcement by the company, dated August 23, 2022, of an “open offer for acquiring up to 26 percent of the voting share capital at Rs. 294 per share”.

The shares of NDTV closed at Rs 374.70 apiece at the BSE today, which was 4.99 percent higher as compared to the previous day’s close. At the NSE, the shares surged by 3.09 percent to close at Rs 369.75 apiece.

In September last year, NDTV’s stock had clocked a 52-week high amid reports of a likely buyout by Adani Group. The company had, then, claimed that its promoters were not in discussions with any entity for a change in ownership or a divestment of their stake.