Adani group and NDTV’s promoter entity RRPR Holding have approached Sebi, seeking clarity on the applicability of the markets regulator’s earlier order regarding the conversion of warrants into shares, a decisive factor in the takeover battle for the media group.
Days after Adani group announced acquiring a 29.18% stake in NDTV through the acquisition of VCPL, which holds a 99.99% stake in RRPR Holding, the media group’s promoters have asserted that the deal cannot go ahead without Sebi’s nod. In an order passed in November 2020, Sebi had restrained NDTV founders - Radhika Roy and Prannoy Roy - from the securities market for two years and that period ended on November 26. As restrictions are still in force, hence a prior written approval from Sebi was required for VCPL for the exercise of the conversion option on the warrants, NDTV founders said.
Both sides have approached Sebi for clarity on the issue and the regulator’s response will be crucial in the takeover battle. In a filing to stock exchanges, NDTV said its founders have informed that RRPR Holding has written a letter on August 28 to Sebi. Hours later, Adani Enterprises informed the bourses that VCPL had also sought clarity on the warrant’s conversion matter.
AMG Media Networks (AMN) said it would acquire 29% of NDTV through an investor in the channel, Vishvapradhan Commercial (VCPL). The investor was bought over from two shareholders, Nextwave Tele ventures and Eminent Networks, for £11.4 million. Also, The Adani Group simultaneously launched public offers to complete the acquisition of two cement majors, ACC and Ambuja Cements, from Switzerland-headquartered Holcim. Adani Group has also offered to buy nearly 490,000 shares of ACC, which means about 26% of the company’s equity, at Rs 2,300 per share.
