Adani group subsidiary AMG Media Networks Limited (AMNL) will indirectly acquire 29.18% stake in the television network.
Adani group subsidiary AMG Media Networks Limited (AMNL) has indirectly acquired 29.18% stake in NDTV.
“This acquisition is a significant milestone in the journey of AMNL’s goal to pave the path of new age media across platforms,” stated 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 to deliver on our vision. We look forward to strengthening NDTV’s leadership in news delivery.”
Vishvapradhan Commercial Private Limited (VCPL), a wholly owned subsidiary of AMNL, has exercised the rights to acquire 99.5% of the equity shares of RRPR Holding Private Limited, a promoter group company of NDTV. RRPR (Radhika Roy Prannoy Roy) holds 29.18% stake in NDTV. This acquisition will result in VCPL acquiring control of RRPR.
VCPL will also launch an open offer to acquire up to 26% stake in NDTV.
NDTV is a three-decades old media house. The company 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.
NDTV recorded a revenue of INR 421 Cr with an EBITDA of INR 123 Cr and Net Profit of INR 85 Cr in FY22 with negligible debt.
Last month, the Securities Appellate Tribunal (SAT) had set aside a Sebi order passed in June 2018 directing VCPL to make an open offer to the shareholders of NDTV.
"The combined reading of the agreement, call option agreements, warrant conversion option and the purchase option does not in any way lead to a conclusion of VCPL acquiring indirect control over NDTV. Thus the direction to VCPL to make an open offer in terms of... SAST Regulations... does not arise," SAT said in its 91-page order.
In May, AMG Media Networks had also acquired a 49% stake in Raghav Bahl-curated digital business news platform Quintillion Business Media Pvt Ltd (QBML) for an undisclosed sum.