Indian billionaire and Asia's richest man Gautam Adani is making moves to gain control over a majority stake in popular media group NDTV.
The TV news group said the move was executed without its consent and the founders of the New Delhi Television (NDTV) were not involved in any communication regarding the matter, reported Reuters.
A unit of the Adani Group said it had used financial rights in a bid to purchase a 29.18% stake in NDTV. It has now announced plans for another open offer for another 26%.
The business group first acquired a company that had loaned Rs 250 crore to NDTV in 2008-2009. Adani conglomerate has now exercised the option to convert that debt into a 29.18% stake in the news channel company.
Hours after Adani Group made the announcement about another 26%, NDTV clarified that the move by Adani was executed without any input from, conversation with, or consent of the NDTV founders.
NDTV in a statement said Vishvapradhan Commercial Private Limited (VCPL) has exercised its rights to acquire 99.50% control of RRPR Holding Pvt Ltd, the promoter-owned company that owns 29.18% of NDTV. In the notice served to NDTV, VCPL has asked to transfer all its equity shares within two days.
Adani Enterprises announced that its wholly owned subsidiary AMG Media Networks (AMNL) has acquired a 100% equity stake in Vishvapradhan Commercial Pvt Ltd (VCPL) under the purchase agreement dated August 23, 2022.
Until Monday, NDTV had maintained the acquisition rumours were baseless.
In a statement to BSE Limited, NDTV stated that, in the best interest of our shareholders, we have clarified to the journalist in writing that this is a baseless rumours. "Radhika and Pranoy Roy are not in discussions now, nor have been, with any entity for a change in ownership or a divestment of their stake in NDTV."
"They individually and through their company, RRPR Holding Private Limited, continue to hold 61.45 percent of the total paid-up share capital of NDTV," said the official statement.
NDTV is one of the most watched news channels in India and it is one of the few channels to criticise the ruling government's policies. The media group has three national channels NDTV 24x7 in English, NDTV India in Hindi, and a business news channel.