A day after Adani Enterprises announced the acquisition of 29.18 percent stake in NDTV, the TV news network has made two disclosures saying that the Securities and Exchange Board of India has barred its promoters Prannoy Roy and Radhika Roy from buying, selling or dealing with securities.
In the disclosures, NDTV stated that in a November 2020 order, SEBI restricted Prannoy and Radhika from accessing the security markets for a period of two years. This period will end on November 26, 2022.
“Unless pending appeal proceedings were to successfully conclude prior, SEBI approval is necessary for the proposed acquirer to secure 99.5 percent interests in the promoter group vehicle, since this would consequently lead to acquisition of voting rights in respect of 29.18 percent of the issued share capital of the target company held by the promoter vehicle group,” the disclosure dated August 25 stated.
In two disclosures late last night--around 11:30pm and 1am--NDTV promoters Radhika & Prannoy Roy seem to have made a move to buy more time before handing over Adani 29.1% NDTV shares held by RRPR. They say SEBI barred them from accessing securities market for 2 years on 7-11-2020 pic.twitter.com/HZIORlwQ1Z
— Krishn Kaushik (@Krishn_) August 25, 2022
NDTV’s holding company RRPR Holding Private Limited was given two days after the announcement of the Adani group’s takeover to transfer its 29.18 percent shares in the broadcaster. However, SEBI’s restriction on NDTV’s promoters could buy them more time before they are obligated to handover the shares to the Adani group.
Adani Enterprises has also launched an open offer to buy another 26 percent of the network and offered to pay Rs 294 per share. The Adani group used its subsidiary, AMG Media Networks Ltd, to buy 100 percent of the equity stakes in Vishvapradhan Commercial Private Limited, a shell company which had loaned over Rs 400 crore to the Roys in 2009. In lieu of the loan, VCPL acquired rights to just over 29 percent shares of NDTV.
Meanwhile, the Delhi Union of Journalists said on Wednesday that it was “deeply disappointed and discouraged” by Adani group’s “hostile takeover” of NDTV.
“It is evident that the two oligarchs of the Indian economy have decided to parcel out the entire media industry between them, leaving no room for independent players. TV media has increasingly become the voice of the corporates and certain political parties,” the union said in a statement.
It went on to “salute” the staff and management of NDTV, “who have stood up to multiple pressures and challenges in these past years to bring us both news and views from a professional perspective”. However, the DUJ expressed concerns that there will be firings and forced resignations of independent journalists.
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