afaqs! news bureau

Adani Group needs SEBI approval to acquire majority stake in the news channel: NDTV

The conglomerate on Tuesday said it was seeking to acquire a majority control over the media network.

NDTV, in a stock exchange disclosure on Thursday, said that its founders are barred from buying or selling shares and so Vishvapradhan Commercial Pvt Ltd (VPCL) along with AMG Media Networks Ltd and Adani Enterprises Ltd will need Securities and Exchange Board of India’s (SEBI) approval to buy 99.5% interests in its promoter group.

“In view of directions in force vide order dated November 27, 2020, of the Securities and Exchange Board of India (SEBI), restraining the Founder-Promoters Dr. Prannoy Roy and Mrs. Radhika Roy from accessing the securities market, and further prohibiting buying, selling, or otherwise dealing in securities, directly or indirectly, or being associated with the securities market in any manner whatsoever for a period of 2 years, which expires on November 26, 2022, unless pending appeal proceedings were to successfully conclude prior, SEBI approval is necessary for the proposed Acquirer to secure 99.5% interests in the Promoter Group vehicle, since this would consequently lead to acquisition of voting rights in respect of 29.18% of the issued share capital of the Target Company held by the Promoter Group vehicle," the company said.

The Adani Group on Tuesday said it had indirectly acquired 29.18% stake in the news channel and was seeking to acquire a majority stake, but NDTV issued a statement shortly after saying the move was executed without consultation with the founders.

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