Amid an alleged hostile takeover attempt by the Adani Group, NDTV (New Delhi Television Limited) decided on Saturday to postpone the company’s annual general meeting for nearly a week.
NDTV’s Annual General Meeting, which was scheduled to start on September 20, 2022, has now been postponed to September 27, 2022. The information was released to market regulators and exchanges in a filing on Saturday.
Following an indirect acquisition of a 29.18% stake in NDTV, Adani Group subsidiaries Adani Enterprises and AMG Media Network Limited have launched an open takeover bid for an additional 26% from the company’s existing shareholders. media.
NDTV, founded by Radhika Roy and Prannoy Roy in 1984, is one of the oldest private news channels in the country. Besides the main national news channel NDTV 24×7, the company also operates two other channels, namely NDTV India, which is a national Hindi news channel, and NDTV Profit, a commercial channel.
In Saturday’s late filing, the company said the company’s 34th annual general meeting was postponed due to required processes following the notice and public announcement of the open offer made by VCPL.
VCPL (Vishvapradhan Commercial Private Limited) is a company from which RRPR Holdings Limited took a 400 crore loan, in 2009-10, on behalf of NDTV.
The loan agreement was such that VCPL will receive warrants for 99.99% of the shares of RRPR for an interest-free loan. The warrants exercisable at any time would automatically make VCPL a majority shareholder of RRPR.
RRPR Holdings Limited, which has owned 29% of NDTV’s shares since 2010, is one of the largest shareholders in the media company.
A few days ago, VCPL, which is said to have links with Mukesh Ambani, was acquired by AMG Media Network Limited from the Adani group.
Following the acquisition, VCPL decided to exercise the warrants for shares of RRPR. This resulted in Adani Group indirectly owning RRPR and also owning a 29.18% stake in NDTV.
Learn more about how Adani acquired a 29% stake in NDTV – CLICK HERE
Shortly after the indirect acquisition of a stake in NDTV, VCPL and other affiliates of the Adani Group made an open bid for an additional 26% stake in the media company.
VCPL and Adani Enterprises also asked RRPR to allocate all shares of its holdings to VCPL within two days.
Even though RRPR Holdings and NDTV countered the award request citing a SEBI ban on Radhika Roy and Prannoy Roy from participating in capital market activities, Adani Group retaliated by stating that Radhika Roy and Prannoy Roy were not parties to the agreement between RRPR and VCPL. And therefore, the SEBI prohibition does not apply to the exercise of warrant rights.