NDTV on November 11 informed the stock exchanges that it has announced an open offer to public shareholders for additional 26% stake sale to Adani Media Networks and Adani Enterprises, and its indirect subsidiary, Vishvapradhan Commercial Pvt Limited (VCPL).
The open offer for acquiring 1.67 crore equity shares with face value of Rs 4, for which a price of Rs 294 per share has been fixed, will tentatively close on December 5, 2022, said JM Financial, which is managing the offer. The offer opening date will be November 22.
Further, the last date for filling the post offer report with Securities and Exchange Board of India (Sebi) has also been revised December 26, 2022.
Earlier, billionaire Gautam Adani-led company had announced that it will launch its open offer for acquiring stake in NDTV from October 17 to November 1.
On August 23, Adani group had announced to acquire a 29.18 percent stake in NDTV through the acquisition of VCPL, which holds a 99.99 percent stake in RRPR Holding.
Following this Adani group firms - Vishvapradhan Commercial Private Limited (VCPL) along with AMG Media Networks and Adani Enterprises Ltd - have proposed to acquire an additional 26 percent or 1.67 crore equity shares.
The key element behind the takeover bid is an unpaid loan that NDTV's promoter entity RRPR Holding Pvt Ltd had availed from VCPL.
NDTV had taken a loan of Rs 403.85 crore in 2009-10 and against this amount, warrants were issued by RRPR. With the warrants, VCPL had the right to convert them into a 99.9 percent stake in RRPR in case the loan was not repaid.
Adani group first acquired VCPL from its new owner and exercised the option to convert unpaid debt into a 29.18 percent stake in the news channel company.