Adani forays into news channel space; set to acquire NDTV

 

 

RICHEST Indian Gautam Adani’s group on Tuesday said it will buy a majority stake in New Delhi Television Ltd, one of the nation’s most popular news channels, as it looks to boost media investments as part of an ambitious expansion plan.

An Adani Group firm first acquired a company that in the past was linked to rival billionaire Mukesh Ambani. The particular company had loaned Rs 250 crore to NDTV in 2008-09 and the Adani group firm now exercised the option to convert that debt into a 29.18 per cent stake in the news channel company.

Subsequently, it has launched an open offer for another 26 per cent stake, the group said in a statement.

NDTV said the debt was converted into equity without any input from the founders or the company.

This will be the ports-to-energy group’s most high-profile bet in the media sector where Ambani already has a sizeable presence through Network18, which runs a bouquetofchannels,including news channel CNNNews18 and business channel CNBC-TV18. Last year, Adani Media Ventures Ltd (AMVL), the media arm under the group’s flagship Adani Enterprises Ltd (AEL), hadacquiredthedigitalbusiness news platform Quintillion Business Media PvtLtd(QBM).“AMVL’swholly-owned subsidiary VishvapradhanCommercial Pvt Ltd (VCPL) holds warrants of RRPR Holding Pvt Ltd(RRPR)entitlingittoconvert them into 99.9 per cent stakeinRRPR.VCPLhasexercisedwarrantstoacquire99.5 per cent in RRPR,” it said. Such acquisition will result inVCPL acquiring control of RRPR. “RRPR is a promoter groupcompanyofNDTVand holds a 29.18 per cent stake inNDTV,”thestatementsaid.