Gautam Adani, Asia’s richest man, is all set to run the leading Indian news network New Delhi Television (NDTV), following the acquisition of a 29.18% stake in the promoter company, Radhika Roy Prannoy Roy, or RRPR, Holding Pvt. Ltd.
Adani, 60, is the third richest man in the world behind Elon Musk and Jeff Bezos.
Board changes
NDTV founders Radhika Roy and Prannoy Roy have resigned as directors of the promoter group, according to a regulatory filing submitted with the Bombay Stock Exchange. However, they haven’t resigned from NDTV’s board, reported The Telegraph.
RRPR Holding has also appointed Sanjay Pugalia, Senthil Sinniah Chengalvarayan, and Sudipta Bhattacharya as directors on the board. Pugalia presently serves as the CEO and editor-in-chief of media initiatives at Adani Group.
Adani Group’s acquisition of NDTV
Adani Group, through unit AMG Media Networks Ltd., acquired a 100% equity stake in Vishvapradhan Commercial Pvt. Ltd., or VCPL, in August, for Rs 113.74 crore. Later in August, the Adani Group announced its plans to acquire a 29.18% stake in NDTV through VPCL. However, the news company raised an objection to the deal, noting that it was done without the consent of its promoter company RRPR Holding. But Adani Group, exercising the right to convert warrants, through VCPL, converted a 2009 loan into equity shares.
In November, the Group made an open offer to acquire an additional 26% stake in NDTV. The offer opened for subscription on Nov. 22 and win continue till Dec. 5. Once closed, the offer will allow the Adani Group to take its total stake in NDTV to 55.18% and become a majority shareholder. The Roys still holds a 32.26% stake in NDTV.
The Roys had launched NDTV some three decades with a single show The World This Week on the state-run Doordarshan in November 1988. At that time, the Roys said, they had “no grand plan” in mind and “certainly no idea” that it would grow from a weekly world news show to India’s first private 24/7 news network and independent news broadcaster.