Adani closes in on India's NDTV takeover as founder entity transfers shares


FE ONLINE DESK | Published: November 29, 2022 13:22:52 | Updated: November 29, 2022 18:39:12


Indian billionaire Gautam Adani speaks during an interview with Reuters at his office in the western Indian city of Ahmedabad in this April 2, 2014 file photo.REUTERS/Amit Dave/File Photo

New Delhi Television Ltd (NDTV) said on Monday an entity backed by its founders had issued shares to a unit of Adani Group, taking the billionaire Gautam Adani-led conglomerate a step closer to taking over the media firm, Reuters reports.

The transfer of shares will give Adani control over a 29.18 per cent stake in the news group. Adani is also conducting an open offer running between Nov 22 and Dec 5 for a 26 per cent stake in NDTV. 

The open offer drew bids for 5.3 million shares as of Monday's close, or around 32 per cent the 16.8 million shares on offer, exchange data showed. 

The ports-to-energy conglomerate run by Asia's richest man unveiled plans late in August to acquire a majority stake in the popular news network, seen as a bastion of independent media. 

More than a decade ago, NDTV founders Radhika and Prannoy Roy took a 4 billion Indian rupee ($49.00 million) loan from a company that Adani acquired in August. In exchange, they issued warrants that allowed the company to acquire a 29.18 per cent stake in the news group. 

NDTV had sought to block the transfer of shares in August, saying its founders had since 2020 been barred from buying or selling shares in India's securities market, and so cannot transfer shares which Adani was trying to secure in a bid to exert control. 

NDTV said the entity backed by its founders issued shares after the market regulator's restrictions on its founders expired on Nov 26.

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