Amidst an alleged hostile takeover attempt by Adani Group, NDTV (New Delhi Television Limited) on Saturday decided to defer the annual general meeting of the company by almost a week.
The annual general meeting of NDTV, which was scheduled to begin on September 20th 2022, has now been postponed to September 27th 2022. The information was passed onto market regulators and exchanges in a filing on Saturday.
After an indirect acquisition of a 29.18% stake in NDTV, subsidiary companies of Adani Group, Adani Enterprises and AMG Media Network Limited launched an open offer to purchase 26% additionally from existing shareholders in the media company.
NDTV which was founded by Radhika Roy and Prannoy Roy in 1984, is one of the oldest private news channels in the country. Apart from the main national news channel NDTV 24×7, the company also operates two more channels, namely, NDTV India, which is a national news channel in Hindi, and NDTV Profit, a business channel.
In the late night filing on Saturday, the company stated that the 34th Annual General Meeting of the company was postponed as a result of processes required after the notice and public announcement of the Open Offer made by VCPL.
VCPL (Vishvapradhan Commercial Private Limited) is a company from which RRPR Holdings Limited took a loan of 400 crores, in 2009-10, on behalf of NDTV.
The loan agreement was in such a way that VCPL will receive warrants against 99.99% shares of RRPR for an interest-free loan. The warrants which can be exercised at any time would automatically make VCPL a majority shareholder in RRPR.
RRPR Holdings Limited which holds 29% shares of NDTV since 2010 is one of the largest shareholders in the media company.
A few days ago, VCPL which allegedly has links with Mukesh Ambani, was acquired by AMG Media Network Limited of Adani Group.
Following the acquisition, VCPL decided to exercise the rights on warrants against shares of RRPR. This resulted in Adani Group indirectly owning RRPR and also owning a 29.18% stake in NDTV.
Read more about how Adani acquired a 29% stake in NDTV – CLICK HERE
Soon after the indirect acquisition of a stake in NDTV, VCPL along with other subsidiaries of Adani Group made an open offer for a 26% additional stake in media company.
VCPL and Adani Enterprises also asked RRPR to allot all shares under its Holdings to VCPL within two days.
Even though RRPR Holdings and NDTV countered the allotment request citing a SEBI ban on Radhika Roy and Prannoy Roy to participate in capital market activities, Adani Group hit back by stating Radhika Roy and Prannoy Roy were not a party to the agreement between RRPR and VCPL. And hence the SEBI ban doesn’t apply to exercising rights on warrants.