{"id":9961,"date":"2022-08-25T15:26:14","date_gmt":"2022-08-25T09:56:14","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=9961"},"modified":"2022-08-25T15:26:19","modified_gmt":"2022-08-25T09:56:19","slug":"timeline-of-adanis-hostile-takeover-bid-for-ndtv","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/timeline-of-adanis-hostile-takeover-bid-for-ndtv\/","title":{"rendered":"Timeline of Adani\u2019s \u2018Hostile\u2019 Takeover Bid for NDTV"},"content":{"rendered":"\n<p>New Delhi Television Ltd. (<a href=\"https:\/\/www.tickertape.in\/stocks\/new-delhi-television-NDTV?checklist=pro&amp;utm_source=blog&amp;utm_medium=article&amp;utm_campaign=bnchttps:\/\/www.tickertape.in\/stocks\/new-delhi-television-NDTV?checklist=pro&amp;utm_source=blog&amp;utm_medium=article&amp;utm_campaign=bnc\" target=\"_blank\" rel=\"noreferrer noopener\">NDTV<\/a>) rose 5% to hit the upper <a href=\"https:\/\/www.tickertape.in\/blog\/stock-trading-halt-circuit-breaker-and-its-significance\/\">circuit<\/a> on Wednesday after <a href=\"https:\/\/www.tickertape.in\/blog\/adanis-rise-to-becoming-asias-richest-billionaire\/\">Gautam Adani<\/a> bid to take over a 29.18% stake in the news company. However, the market has called this a hostile takeover as the news channel claims the stake in NDTV has been acquired without discussion, consent or notice. Here\u2019s the timeline of events that led to Gautam Adani\u2019s hostile bid to takeover NDTV.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/timeline-of-adanis-hostile-takeover-bid-for-ndtv\/#Part-1-The-loan-transaction-that-started-it-all\" title=\"Part 1: The loan transaction that started it all\">Part 1: The loan transaction that started it all<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/timeline-of-adanis-hostile-takeover-bid-for-ndtv\/#Part-2-Zooming-into-the-new-lender-%E2%80%93-VPCL\" title=\"Part 2: Zooming into the new lender \u2013 VPCL\">Part 2: Zooming into the new lender \u2013 VPCL<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/timeline-of-adanis-hostile-takeover-bid-for-ndtv\/#Part-3-Tribunal-verdict-in-favour-of-RRPR-despite-SEBI-annoyance\" title=\"Part 3: Tribunal verdict in favour of RRPR despite SEBI annoyance\">Part 3: Tribunal verdict in favour of RRPR despite SEBI annoyance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/timeline-of-adanis-hostile-takeover-bid-for-ndtv\/#Part-4-VPCLs-new-ownership\" title=\"Part 4: VPCL\u2019s new ownership\">Part 4: VPCL\u2019s new ownership<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/timeline-of-adanis-hostile-takeover-bid-for-ndtv\/#Part-5-Adani-makes-his-move\" title=\"Part 5: Adani makes his move\">Part 5: Adani makes his move<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/timeline-of-adanis-hostile-takeover-bid-for-ndtv\/#The-bigger-picture\" title=\"The bigger picture\">The bigger picture<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Part-1-The-loan-transaction-that-started-it-all\"><\/span><strong>Part 1: The loan transaction that started it all<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>In 2005, private <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> firm General Atlantic acquired a minority stake of approximately 8% in NDTV for Rs. 116 cr. in a block deal.<\/li><li>In December 2007, NDTV promoters Radhika and Prannoy Roy bought back 7.73% of NDTV from General Atlantic. This triggered an open offer to other minority <a href=\"https:\/\/www.tickertape.in\/blog\/shareholders\/\">shareholders<\/a>.<\/li><li>To fund this, the Roys set up RRPR Holding Pvt. Ltd., which borrowed Rs. 501 cr. from India Bulls. To repay this amount partially, Rs. 375 cr. was borrowed from <a href=\"https:\/\/www.tickertape.in\/stocks\/icici-bank-ICBK?checklist=pro&amp;utm_source=blog&amp;utm_medium=article&amp;utm_campaign=bnc\" target=\"_blank\" rel=\"noreferrer noopener\">ICICI Bank<\/a> at an <a href=\"https:\/\/www.tickertape.in\/blog\/flat-interest-rate-vs-reducing-balance-interest-rate\/\">interest rate<\/a> of 19%.<\/li><li>Post the economic slowdown, in 2009, ICICI Bank settled the loan at Rs. 350 cr. This amount was funded through a loan RRPR took from Vishvapradhan Commercial Pvt. Ltd. (VPCL).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Part-2-Zooming-into-the-new-lender-%E2%80%93-VPCL\"><\/span><strong>Part 2: Zooming into the new lender \u2013 VPCL<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>In 2009 and early 2010, VPCL lent Rs. 350 cr. and Rs. 53.85 cr. in two tranches, respectively (Rs. 403.85 cr. in total) as an interest-free loan in exchange for warrants.<\/li><li>According to the loan agreement, RRPR was required to issue warrants to VPCL representing 99.99% of its <a href=\"https:\/\/www.tickertape.in\/blog\/share-capital\/\">share capital<\/a> when exercised. RRPR\u2019s stake in NDTV increased to 29.18% by January 2010.<\/li><li>Earlier in 2009, VPCL had received Rs. 403.85 cr. as an unsecured loan from Shinano Retail Pvt. Ltd., which had received the same amount from Reliance-owned subsidiaries.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Part-3-Tribunal-verdict-in-favour-of-RRPR-despite-SEBI-annoyance\"><\/span><strong>Part 3: Tribunal verdict in favour of RRPR despite SEBI annoyance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><a href=\"https:\/\/www.tickertape.in\/blog\/securities-and-exchange-board-of-india-functions-powers-and-regulations-of-sebi\/\">SEBI<\/a> contested that the transaction between RRPR and VPCL was designed to acquire indirect control of NDTV and not a loan. They said that VPCL failed to announce an open offer as a result, and NDTV did not fulfil its obligations of informing all shareholders of the transaction details.<\/li><li>Earlier this year, The Securities Appellate Tribunal ruled in favour of VPCL stating that as long as the loan remained unpaid, VPCL could not interfere in management decisions. Additionally, it was a commercially justifiable arrangement.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Part-4-VPCLs-new-ownership\"><\/span><strong>Part 4: VPCL\u2019s new ownership<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>In 2012, Eminent Networks took over the ownership of the loan VPCL took from Shinano Retail. They also invested Rs. 50 cr. in VPCL, which was transferred to Shinano Retail.<\/li><li>However, Shinano Retail said it had received all its money back (Rs. 403.85 cr.).<\/li><li>Eminent Networks was owned by Mahendra Nahata, a Board Member of Reliance Jio Infocomm.<\/li><li>According to statutory statements filed in 2012, the new owners of VPCL were NextWave Televenture and Skyblue Buildwell, both companies linked to Mahendra Nahata.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Part-5-Adani-makes-his-move\"><\/span><strong>Part 5: Adani makes his move<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>On Tuesday this week, AMG Media Networks Ltd, a wholly-owned subsidiary of Adani Enterprises, acquired VPCL for a total consideration of Rs. 113.74 cr.<\/li><li>AMG Media Networks proceeded to exercise the warrants owned by VPCL to own 29.18% of NDTV.<\/li><li>Since the stake is greater than 26%, AMG Media Networks was obligated to issue an open offer for an additional 25% stake in NDTV. They offered Rs. 294 per share, which is a discount on the current market price.<\/li><li>The Roys still own 32.26% of NDTV, which was not a part of RRPR. They issued a statement that their consent was not sought by Adani.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The-bigger-picture\"><\/span><strong>The bigger picture<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While Indian venture capitalists shy away from making large investments in news media, business conglomerates and the political class have been consolidating their positions. <a href=\"https:\/\/www.tickertape.in\/blog\/facts-about-adani-group\/\">Adani Group<\/a> also owns 49% of The Quint, while <a href=\"https:\/\/www.tickertape.in\/stocks\/reliance-industries-RELI?checklist=pro&amp;utm_source=blog&amp;utm_medium=article&amp;utm_campaign=bnc\" target=\"_blank\" rel=\"noreferrer noopener\">Reliance Industries<\/a> owns Network 18 (CNN-IBN, IBN7, CNBC-TV18, CNBC Awaaz, and ETV Network). The only previous RIL involvement with the media was when it bought the Sunday Observer and launched the Business and Political Observer in 1991. Both those ventures were shut down eventually. The political class has been entrenched in several national and regional language media companies as well.<\/p>\n\n\n\n<p><strong>About the News author<\/strong>&nbsp;<\/p>\n\n\n\n<p>This news post has been contributed by&nbsp;<a href=\"https:\/\/boringnews.co\/?referral=arpt98w9x&amp;utm_source=Tickertape&amp;utm_medium=Article&amp;utm_campaign=NDTV_20220825\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">The Boring News Co.<\/a>&nbsp;which is a free daily email newsletter that gets you updated on the most important events across policy, business, international affairs, legal and sports categories in under 5 minutes. They claim to deliver news with no sensationalism, gossip, political slugfests or opinions \u2013 just the facts that matter in bullet points.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NDTV rose 5% to hit the upper circuit on Wednesday after Gautam Adani\u2019s bid to take over the news company. The market has called it \u2018hostile\u2019 as no discussion, consent or notice was involved.<\/p>\n","protected":false},"author":103,"featured_media":9962,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1744],"tags":[],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/08\/08-1.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9961"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=9961"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9961\/revisions"}],"predecessor-version":[{"id":9976,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9961\/revisions\/9976"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/9962"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=9961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=9961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=9961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}