Adani's open offer for addl 26% NDTV stake begins today
New Delhi, November 21
The Adani Group’s open offer to acquire an additional 26% stake in New Delhi Television (NDTV) from the open market will start from Tuesday. The Group has fixed a price band of Rs 294 per share and the offer will close on December 5, according to a notice by JM Financial, which is managing the offer.
If fully subscribed, the open offer will amount to Rs 492.81 crore. On Monday, NDTV shares closed at Rs 382.20, down 5%.
“The decision to acquire NDTV was arrived at in furtherance of the Adani Group’s objective to set up a credible next-generation media platform with an emphasis on digital and broadcast segments, and that NDTV is a suitable broadcast and digital platform to deliver on this vision,” Adani Enterprises had said in a regulatory filing in October.
Adani Enterprises had quietly acquired a company VCPL that had lent over Rs 400 crore to NDTV over a decade ago. In exchange, it had received warrants that permitted this little-known company to acquire 29.18% in NDTV. VCPL exercised that option after being bought out by Adani Enterprises and then announced that it would buy an additional 26% stake from minority shareholders of NDTV. This will give it a controlling stake in NDTV.
Rs 493-crore offer
- The group will acquire an additional 26% stake in NDTV from the open market
- It has fixed a price band of Rs 294 per share and the offer will close on December 5
- If fully subscribed, the Adani Group will have a controlling stake in NDTV
