Adani to launch open offer for 26 per cent stake in NDTV on October 17

NEW DELHI:  Adani Group will launch its open offer for acquiring an additional 26% stake in New Delhi Television Ltd (NDTV) from October 17 to November 1, JM Financial, which is managing the offer, said in a draft letter of offer (DLOF), on Wednesday.

This letter comes even as there is no clarity as when the NDTV founders will allot shares held by promoter holding vehicle RRPR to Vishvapradhan Commercial Private Limited (VCPL), which is needed for the Gautam Adani-led Group to acquire a 29.18% stake in the media outlet.

Since the Adanis announced the hostile takeover of NDTV last month, NDTV promoters have written multiple letters to VCPL, claiming that the transaction to convert the warrants into equity, would require approval from the Securities and Exchange Board of India and income tax authority.

However, the Adani Group has termed these claims as delaying tactics. VCPL, now acquired by Adani, had issued a loan of Rs 403.85 crore to RRPR Holding in 2009-10. Against this amount, convertible warrants were issued to the lending entity by RRPR, which holds a 29.18% stake in NDTV.

Three firms-VCPL, AMG Media Networks and Adani Enterprises, will launch the open offer to acquire up to 26% of the voting share capital at NDTV. They have offered a price of Rs 294 for the acquisition of up to 1.67 crore shares of NDTV, leading to a total consideration of Rs 492 crore.

However, share prices of NDTV on Thursday closed at Rs 468 level, much more than what Adani’s are offering.  As per the draft paper, October 13 has been kept as the last date for upward revision of the Offer Price / the size of the Offer.

The draft paper also specifies that the last date for SEBI observations is September 28. The last date for dispatch of the letter of offers to the public shareholders is October 10.