Indian billionaire Gautam Adani’s conglomerate on Tuesday said it seeks to control the majority of stake in a popular news channel New Delhi Television (NDTV).
Hours after the announcement, NDTV issued a statement that the Adani Group’s move “was executed without any input from, conversation with, or consent of the NDTV founders.
According to Adani Group, it used the financial right in a bid to purchase a 29.18% stake in the media channel. The group is also planning for a subsequent open offer for a stake of another 26% in line with Indian regulations.
NDTV is one of the popular and trusted news organisations, which operates three national channels: NDTV 24×7 in English, NDTV India in Hindi, and a business news channel.
According to Dipti Lavya Swain, founder and managing partner, DLS Law Offices, “This is not a friendly takeover, which generally is as per agreed terms and mechanism and, in fact, may end up being a hostile takeover”.
Adani Group did not immediately respond to NDTV comments. Also, Adani did not disclose the financial details of the stake purchase. It said its subsequent open offer would be 294 Indian rupees ($3.68) per NDTV share, which would be somewhere 4.93 billion rupees.
With this acquisition, Adani Group seeks to expand its media business. “This acquisition is a significant milestone in the journey of AMNL’s goal to pave the path of new age media across platforms,” said Sanjay Pugalia, CEO of AMG Media Networks Limited.