In an unexpected move that is capable of changing India’s media landscape, billionaire Gautam Adani started the takeover of media giant NDTV. On the surface, although the action looks like a sudden one, the reality is that it is an outcome of something that happened 13 years ago.
On August 22, NDTV said that the news about its founders Prannoy Roy and wife Radhika Roy selling their stakes in the company held via RRPR Holding Private Limited was a ‘baseless rumour.’ They made it clear that no discussions have taken place regarding the change in ownership or divestment of their stake in NDTV.
On August 23 came another announcement by Vishvapradhan Commercial Private Limited (VCPL), a wholly-owned subsidiary of Adani Group’s AMG Media Networks, that it would acquire 29.18 per cent in the media giant by converting its warrants into equity shares to acquire RRPR Holding.
The owners of the New Delhi Television Limited (NDTV) said they were completely unaware of the takeover and it was done without their consent.
As mentioned above, although it looks like happened within two days, the reality is different. It all begins with VCPL which gave a loan to NDTV in July 2009 to repay a loan taken from ICICI Bank. Instead of the loan, VCPL got warrants which when exercised would give VCPL about 100 per cent ownership in RRPR Holding.
At the time when Shinano gave the loan to VCPL, Shinano was a completely-owned subsidiary of Reliance Industrial Investments and Holdings Limited. According to the record of the Ministry of Corporate Affairs (MCA), all these companies were well-connected during the transaction period.
And, as per the statements filed by VCPL with the MCA this year, it was owned entirely by Nextwave Televenture. On Tuesday, Adani Group took it over and exercised the option to convert the debt into a 28.18 per cent stake in the news channel firm. It has also launched an open offer worth Rs 493 crore for another 26 per cent stake. This is Adani Group’s most high-profile bet in the media sector so far.
