Adani Group to acquire 29.2% stake in NDTV, launches open offer

AMG Media Networks Limited, a subsidiary of the Adani group, will indirectly acquire a 29.18% stake in New Delhi Television Ltd (NDTV) and launch an open offer for another 26% stake in the media house, the Adani Group said in a statement. Adani entities made ₹493-crore open offer for 26% stake in NDTV at ₹294 per share. The media giant's shares closed 5% higher today at ₹376.55 apiece.

AMNL's wholly owned subsidiary VCPL holds warrants of RRPR Holding Private Limited (RRPR) entitling it to convert them into 99.99% stake in RRPR. VCPL has exercised warrants to acquire 99.5% stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR.

RRPR is a promoter group company of NDTV and holds 29.18% stake in NDTV. VCPL, along with AMNL and AEL (persons acting in concert), will launch an open offer to acquire up to 26% stake in NDTV at ₹294 per share.

The Adani group entities will launch an open offer to acquire up to 26% stake in NDTV, in compliance with the requirements of the SEBI’s (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

A public announcement has been made by JM Financial Ltd, which is managing the offer on behalf of the acquirers.

"The Offer Price is higher than the price determined in accordance with Regulation 8(2) of the SEBI (SAST) Regulations," the offer said.

NDTV is a leading media house, which operates three national news channels – NDTV 24x7, NDTV India and NDTV Profit. It also has strong online presence and remains one of the most followed news handles on social media with more than 35 million followers across various platforms.

The company recorded a revenue of ₹421 crore with an EBITDA of ₹123 crore and net profit of ₹85 crore in FY22.

“This acquisition is a significant milestone in the journey of AMNL’s goal to pave the path of new age media across platforms,” said Sanjay Pugalia, CEO, AMG Media Networks Limited.

“AMNL seeks to empower Indian citizens, consumers and those interested in India, with information and knowledge. With its leading position in news and its strong and diverse reach across genres and geographies, NDTV is the most suitable broadcast and digital platform."

AMNL or AMG Media Networks Limited is a wholly owned subsidiary of Adani Enterprises Limited and houses the media business of the Adani Group. VCPL, which was recently acquired by AMNL, is its wholly owned subsidiary.

Gautam Adani competes with Mukesh Ambani, chairman of oil-to-telecom conglomerate Reliance Industries Ltd, that also has an interest in India's vibrant media industry and owns Network18.

Adani Group has seven publicly listed firms, which are in businesses such as operating airports and ports, power generation and transmission, coal and gas trading.

Adani Enterprises Limited is the flagship company of Adani Group, one of India’s largest business organisations.

NDTV shares had closed at ₹366 on BSE today.