Indian billionaire Gautam Adani, who owns a conglomerate with a wide range of commercial interests, said he will launch an open offer as mandated by the Securities and Exchange Board of India (SEBI) to acquire an additional 26% of television station NDTV Ltd. on Tuesday.
A Brief Details Gautam Adani Buys 29% of NDTV:
In May of this year, Adani Group announced that it would buy a 49% stake in a digital news company and intends to increase its media investment by launching a television network.
The purchase put an end to months of rumors over a possible acquisition, which caused the price of NDTV shares to increase fivefold in nine months, from $75.55 on December 1 to $376.55 on Tuesday on BSE.
The Adani Group said in a press release that AMG Media Networks Ltd, a subsidiary of its flagship Adani Enterprises Ltd, acquired the stake in NDTV indirectly on Tuesday by purchasing Vishvapradhan Commercial Pvt. Ltd (VCPL), which held convertible debentures in RRPR Holding Pvt. Ltd, which in turn owned 29.18% of NDTV Ltd.
In exchange for a loan it provided to the promoter holding company in the amount of 404 crores, Vishvapradhan acquired the debentures in 2009–2010.
An organization that purchases more than 25% of the equity in a publicly traded firm is required by Indian securities law to make an open offer to public shareholders to purchase the remaining 26%.
According to Sebi’s takeover procedures, Adani Group and Vishvapradhan declared an open offer on Tuesday for 294 rupees per share, or 28% less than NDTV’s closing price of 376 rupees on the same day.