Adani Group: The market watchdog Sebi accepted Adani Group’s open offer to purchase a further 26% share in the broadcaster New Delhi Television Ltd. on Monday. This takeover effort has sparked worries about the deterioration of press freedom in the largest democracy in the world.
According to a statement on SEBI’s website, the Securities & Exchange Board of India accepted the Adani Group’s open offer, enabling Adani to purchase more equity from the media company’s minority owners.
The conglomerate, headed by Gautam Adani, the richest man in Asia, had changed the offer’s launch date to November 22. NDTV had announced this week that it would close on December 5.
Adani’s initial intention was to begin its open offer last month, but it was postponed while it awaited permission from the markets regulator. After acquiring an indirect 29.18% stake in the broadcaster back in August, the billionaire’s ports-to-power business launched a hostile takeover effort for it.
NDTV’s founders received a loan of more than 400 crore from a little-known company more than ten years ago in exchange for warrants that would have permitted the company to purchase a 29.18% share in the news organisation at any moment.
The buyout attempt has been rejected by Prannoy Roy and Radhika Roy, the founders of NDTV. They had insisted that neither of them knew anything about the takeover and that it had been carried out without their permission.
Adani has now taken a step toward expanding its presence in the Indian media industry. The billionaire is quickly expanding his enterprise beyond its foundation of coal mining and ports to branch into airports, data centres, cement, and digital services. The billionaire’s personal fortune, estimated at about $138 billion, has increased the most globally in 2022.
For the second quarter that concluded in September, NDTV recorded a rise in consolidated net profit of 4.4% to 13.03 crore. According to a regulatory filing, the company reported a net profit of 12.48 crore during the quarter from July to September of last year.
NDTV shares have been put up for sale by Adani Group at a price of 294 rupees ($3.6) each, while the media company’s stock rose 24% on Monday to close at 364.85 rupees.