Team Herald
PANJIM: Adani group's acquisition bid of New Delhi Television (NDTV) is being labelled as a “hostile takeover” by the news channel’s owners Prannoy and Radhika Roy as according to them, the acquisition was done “without discussion, consent or the notice”.
The opposition has reacted sharply to this and one of its leading voices Jairam Ramesh said in a tweet, 'the hostile takeover' bid of the well-known TV news network by the Prime Minister's ‘khaas dost’ (special friend) is a “brazen move to control and stifle any semblance of an independent media.”
Rajya Sabha member and senior advocate Kapil Sibal said, “Almost the last bastion of Independent journalism being taken over by industry."
"We should be worried!”
UK’s leading and prestigious newspaper Guardian did a lead story with a headline. “Media freedom fears in India after Modi ally Adani buys 29% stake in NDTV.”
The NDTV promoter company RRPR (Radhika Roy Prannoy Roy) Holding Pvt Ltd had taken a loan of Rs 403.85 crore from a company linked to Mukesh Ambani in 2009-10 named Vishvapradhan Commercial Pvt Ltd (VPCPL).
In exchange, the company issued warrants that allowed VPCL to acquire a 29.18 per cent stake in the newsgroup. Those warrants were convertible at any time in case the loan wasn’t paid-back. As per the terms of the agreement, the Roys had to return the loan money to VCPL in 2019, which they have failed to repay.
On Tuesday, Adani Group said that it had acquired VCPL and exercised rights to convert the warrants to recover the loan and get 99.50 per cent control of RRPR Holding Private Limited. This should give it the 29.18 per cent stake.
Following this transaction, VCPL, AMG Media Networks (Adani Group’s media arm) and Adani Enterprises are looking to spend Rs 492.81 crore.
This amount is to acquire an additional 26 per cent stake in an open offer from the public shareholders of NDTV. This will give Adani a 55 per cent share in NDTV and the majority shareholder.
Radhika and Prannoy Roy continue to hold a 32.26 per cent stake in NDTV. Prannoy Roy holds a 15.94 per cent stake in NDTV while his wife Radhika Roy holds a 16.32 per cent stake in the news channel.