The founders of NDTV to sell the majority of their ownership interest in the broadcaster to the Adani Group
- ByStartupStory | December 24, 2022
Prannoy Roy, the creator of NDTV, and his wife Radhika Roy said on Friday that they would sell Adani Group all but 5% of their remaining shares in the news broadcaster for up to Rs. 647.6 crore.
In recent weeks, Roys, who established New Delhi Television Ltd. (NDTV) as India’s first and largest private producer of news, current affairs, and entertainment television, lost their position as the company’s major stakeholder.
This comes after Adani Group acquired a controlling stake in NDTV by first purchasing a startup funded by the founders and then acquiring further shares on the open market. According to stock exchange filings by the firm, Roys are currently selling 27.26% of their remaining 32.26% stake in NDTV.
It stated that the sale would take place on or after December 30 in a single or several tranches but withheld the cost. According to the filing, NDTV’s volume-weighted average market price over the previous 60 trading days was Rs 368.43. At this price, Roys would receive up to Rs 647.6 crore from the sale of 1.75 billion shares. Following the purchase of the founders’ interest, Adani Group will own 69.71% of NDTV.
“The (Adani Group firm) AMG Media Network, after the recent open offer (made to minority shareholders after buying out promoter firm), is now the single-largest shareholder in NDTV.
“Consequently, with mutual agreement, we have decided to divest most of our shares in NDTV to the AMG Media Network,” the founders said in a statement to the stock exchanges.
The Adani Group currently owns 37.44 percent of NDTV, while the two jointly own 32.26 percent of the company. The statement was made shortly after the NDTV board appointed two nominee directors from the largest Asian conglomerate, which is run by Gautam Adani, to the board.
“Since the open offer (by Adani Group) was launched, our discussions with Gautam Adani have been constructive; all the suggestions we made were accepted by him positively and with openness,” Roys said in the statement without giving details.
Some of the most well-known reporters, anchors, and producers work for NDTV. India’s most advanced and cutting-edge production and news gathering facilities are housed at its 23 offices and studios spread around the nation.
“We started NDTV in 1988 in the belief that journalism in India was world-class but needed a strong and effective broadcast platform that would allow it to grow and shine. After 34 years, we believe that NDTV is an institution that has met so many of our hopes and ideals; we are so proud and grateful that across the globe, NDTV is recognised as ‘India’s and Asia’s Most-Trusted News Broadcaster,” the founders said in the statement.
Adani, they said, “has invested in a brand that is synonymous with Trust, Credibility and Independence, and we are hopeful that he will preserve these values and expand upon them with all the responsibility required of a leader of an organisation of this nature.” “We look forward to watching NDTV, and its entire extraordinary team, delivering the next phase of growth, one that India can be proud of,” they added.
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