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Adani group's open offer to buy a 26 per cent stake in NDTV will begin Tuesday. This stake will be in addition to the 29.18 per cent stake which was acquired by the company indirectly in August. The offer for 16.7 million shares at Rs 294 each totalling nearly Rs 493 crore will remain open till December 5.
The open offer was to be introduced on October 17 till November 1 but was postponed due to the absence of the required approval from the Securities and Exchange Board of India (Sebi).
Last week, however, Sebi approved the offer.
Prannoy Roy and Radhika Roy, promoters of NDTV, directly hold 15.94 per cent and 16.32 per cent stakes, respectively, in the company.
Adani-NDTV deal: What has happened so far
General Atlantic, a private equity firm, acquired an 8 per cent stake in NDTV for Rs 116 crore.
Radhika and Prannoy Roy bought back a 7.73 per cent stake, triggering an open offer to other minority stakeholders of NDTV.
To fund the offer, RRPR Holdings (Radhika Roy Prannoy Roy) was set up by Roys. They borrowed Rs 501 crore from India Bulls.
To repay this, a loan of Rs 375 crore was taken from ICICI Bank.
Post-depression, ICICI Bank settled the loan for Rs 350 crore. To pay for this, RRPR took a loan from Vishvapradhan Commercial Pvt Ltd (VCPL).
VCPL gave two interest-free loans worth Rs 350 crore and Rs 53.85 crore to RRPR. In return, RRPR issued warrants to VCPL which, if exercised, would represent 99.99 per cent of its share capital. This would amount to a 29.18 per cent stake in NDTV.
Another loan of Rs 403.85 crore was taken from Shinano Retail Pvt Ltd by NDTV.
Eminent Networks took over the ownership of Shinano's loan to VCPL. Eminent was owned by Mahendra Nahata who was also a board member of Reliance Jio.
The VCPL's new owners were NextWave Televenture and Skyblue Buildwell. Both of the companies reportedly had links with Nahata.
Adani Group's AMG Media Networks Ltd acquired VCPL for Rs 113.74 crore. It proceeded to use the warrants to own a 29.18 per cent stake in NDTV.
As the stake was greater than 26 per cent, it obligated an open offer for another 25 per cent stake. AMG offered Rs 294 per share.
The open offer was scheduled for October 17 but was postponed. Now, it will open on Tuesday.
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First Published: Tue, November 22 2022. 10:46 IST