Adani group’s open offer to acquire an additional 26 percent stake in the media firm New Delhi Television (NDTV) from the market would start on Tuesday.
The offer, for which a price band of Rs 294 per share has been fixed, will open on November 22 and will close on December 5, said a notice by JM Financial, the firm managing the offer on behalf of Adani Group firms.
The combination, run by India’s richest man Gautam Adani, in August acquired a little-known company that lent over Rs 400 crore to NDTV’s founders more than a decade ago in exchange for warrants that allowed the company to acquire a stake of 29.18 percent in the newsgroup at any time.
VCPL – the firm that the Adani group bought out – announced that it would launch an open offer on October 17 to buy an additional 26 percent stake from minority shareholders of NDTV. However, the offer was delayed.
VCPL along with AMG Media Networks and Adani Enterprises Ltd had proposed to acquire an additional 26 percent or 1.67 crore equity shares at an offer price of Rs 294 per share.
If fully subscribed, the open offer will amount to Rs 492.81 crore at a price of Rs 294 per share.
“The decision to acquire NDTV was arrived at in furtherance of the Adani Group’s objective to set up a credible next-generation media platform with an emphasis on digital and broadcast segments, and that NDTV is a suitable broadcast and digital platform to deliver on this vision,” Adani Enterprises had said in a regulatory filing in October.
On Monday, shares of NDTV closed at Rs 382.20 on BSE, down 5 percent, touching a lower circuit.